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

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

There are several reasons that may compel you to leave the vat system. You can apply for deregistration of vat in case your business has collapsed and you have 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 1 year, you sell your business, there is a alternation in the legal status of the business, you can 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 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 may also voluntarily leave the vat tax system in case your taxable supplies are generally or even wholly zero rated. You can even do this if your input tax usually exceeds your output tax. However, out of all above circumstances you will need to provide required proof in addition to convince hmrc vat regarding the genuineness of the reason as to why you want 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.

For you to definitely deregister yourself from vat numbers you will need to contact your vat agent that should guide you about the exact process that must be followed so that you don’t end up making errors. You will need to fill 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 may require you to tick the appropriate reason as to the reasons you’ve requested deregistration along with offering the required anticipated sales figures. You will also need to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will have 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 in a period of 3 weeks. In the event you don’t receive a reply then you definitely should remind them. If hmrc is satisfied with your 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 now be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain circumstances 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. If your entire papers have been in order and when there aren’t any mistakes in the deregistration form then you ought to be out of the vat system in a month of filing vat deregistration.