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

If you’re a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a variety of reasons then you need to learn everything about the vat registration number vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you still have to take into account vat and file your 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 within the next 1 year, you sell your business, 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 various 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 step out of the vat tax system if 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, out of all above circumstances you will need to provide required proof as well as convince hmrc vat regarding the genuineness of the reason as to why you wish to cancel your vat registration. Once you’re 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 you will have to get hold of your vat agent that will direct you on the exact process that must be followed in order that you do not 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 may need you to tick the right reason as to why you have applied for deregistration along with offering 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 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 often reply within a time period of 3 weeks. In case you do not receive a reply then you definitely should remind them. If hmrc is satisfied with the application then you will receive a formal notice of vat cancellation on VAT35 form as well as receive a formal notice of exemption from registration on VAT8 form. Your vat agent will be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

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