If you’re a vat registered trader in the United Kingdom that wants to surrender your vat certificate for a variety of reasons then you will want to learn all about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you still have to take into account vat and file a final vat return.
There are several reasons that may compel one to come out of the vat system. It is possible to 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 organization, there is a alternation in the legal status of the business, you either join another vat group or disband your existing vat group, or you want 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 legitimate candidate for vat deregistration.
You can also voluntarily leave the vat tax system if your taxable supplies are mainly or perhaps wholly zero rated. You can also do this in case your input tax usually exceeds your output tax http://vatverification.com. However, in all the above circumstances you will have to provide required proof in addition to convince hmrc vat regarding the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you are deregistered from vat then you’ll no longer be allowed to issue vat invoices or file vat returns.
In order for you to definitely deregister yourself from VAT you will have to contact your vat agent that will direct you on the exact process to be followed in order that you do not find yourself making errors. You will have to fill the VAT 7 vat form after you have read and understood vat notice 700/11 on ?Canceling your registration? along with notice 700/1 among other notices in this range. This form will require your vat registration number, business name and address, and may need you to tick the right reason as to why you have requested deregistration in addition to providing the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets which you currently hold. You will also have to specify if you stick to the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will often reply within a time period of 3 weeks. In the event you don’t receive a reply then you 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 have the ability to direct 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 have to follow proper procedure as laid down by hmrc vat department continue reading. If your entire papers have been in order and if there aren’t any mistakes in the deregistration form then you should be out from the vat system in a month of filing for vat deregistration.