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

If you are a vat registered trader in the UK that wants to surrender your vat certificate for a variety of reasons then you need to know all about the vatregistrationnumber.com vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you will still have to take into account vat and file your final vat return.

There are many reasons that could compel you to leave the vat system. You can apply for deregistration of vat if your business has collapsed and you’ve filed for insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 in the next 12 months, you sell your business, there is a change in the legal status of the business, you either join another vat group or disband your existing vat group, or else 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 can make you a valid candidate for vat deregistration.

You may also voluntarily step out of the vat tax system in case your taxable supplies are mainly or even wholly zero rated. You can also do this in case 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 want to cancel your vat registration. Once you are deregistered from vat then you will no longer be allowed to issue vat invoices or file vat returns.

For you to deregister yourself from you will need to get hold of your vat agent that should direct you on the exact process that must be followed so that you don’t find yourself making errors. You will have to fill up the VAT 7 vat form after 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 need your vat registration number, business name and address, and will require you to tick the right reason as to the reasons you’ve applied for deregistration in addition to offering the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets which you currently hold. Additionally, you will need to specify in the event you stick to the vat cash accounting system.

Once you have filled up the vat deregistration form then hmrc will often reply within a period of 3 weeks. In the event you don’t get a reply then you definitely should remind them. If hmrc is satisfied with your 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 be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain situations compel you to make an application for cancellation of your vat certificate then you’ll need to follow proper procedure as laid down by hmrc vat department. If your entire papers are in order and when there aren’t any mistakes in your deregistration form you then ought to be out of the vat system in a month of filing for vat deregistration.