Know all about the vat deregistration process to cancel your vat number

If you’re a vat registered trader in the United Kingdom that wants to surrender your vat certificate for a number of reasons then you need to know everything about the http://vatregistrationnumber.com vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you still have to account for vat and file a final vat return.

There are several reasons that may compel you to come out of the vat system. You can make an application for deregistration of vat in case your business has collapsed and you have declared insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 within the next 12 months, you sell your business, there’s a alternation in the legal status of your business, you can either join another vat group or disband your existing vat group, or you intend to join the agricultural flat rate vat scheme. There are several other reasons which are specified by HM Revenue and Customs or hmrc vat department that could allow you to be a legitimate candidate for vat deregistration.

You can also voluntarily step out of the vat tax system in case your taxable supplies are mainly or even wholly zero rated. You can even do so if your input tax usually exceeds your output tax. However, in all the above circumstances you will need to provide required proof as well as convince hmrc vat regarding the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you’re deregistered from vat then you will not be allowed to issue vat invoices or file vat returns.

For you to definitely deregister yourself from you will have to get hold of your vat agent that will direct you about the exact process to be followed so that you don’t find yourself making errors. You will have to fill up the VAT 7 vat form once you have read and understood vat notice 700/11 on ?Canceling your registration? along with notice 700/1 among other notices within this range. This form will need your vat registration number, business name and address, and may need you to tick the right reason as to the reasons you have applied for deregistration along with providing the required anticipated sales figures. You will also need to mention the gross value including vat of stocks and assets which you currently hold. Additionally, you will have to specify if you follow the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will usually reply in a period of 3 weeks. In the event you don’t receive a reply then you should remind them. If hmrc is content with the application then you’ll get a formal notice of vat cancellation on VAT35 form as well as get a formal notice of exemption from registration on VAT8 form. Your vat agent will now have the ability to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain circumstances compel you to make an application for cancellation of the vat certificate then you’ll have to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and when there are no mistakes in the deregistration form then you ought to be out of the vat system within a month of filing for vat deregistration.