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

If you are a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a variety of reasons then you will want to know everything about the vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is pretty simple, you will still have to account for vat and file your final vat return.

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

You may also voluntarily step out of the vat tax system if your taxable supplies are mainly or perhaps wholly zero rated. You can even do this in case your input tax usually exceeds your output tax. However, out of all above circumstances you will have to provide required proof as well as convince hmrc vat as to 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 no longer be allowed to issue vat invoices or file vat returns.

For you to deregister yourself from vat validation you will have to contact your vat agent that will direct you on the exact process that must be followed so that you do not end up 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? together with notice 700/1 among other notices in this range. This form will require your vat registration number, business name and address, and may require you to tick the right reason as to the reasons you’ve 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. You will also need to specify in the event you follow the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In case you do not receive a reply then you definitely should remind them. If hmrc is content with the application then you will get a formal notice of vat cancellation on VAT35 form and also get a formal notice of exemption from registration on VAT8 form. Your vat agent will have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain situations compel you to apply for cancellation of the vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If your entire papers are in order and when there are no mistakes in your deregistration form you then should be out from the vat system within a month of filing for vat deregistration.