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

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 know all about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is quite simple, you will still need to take into account vat and file your final vat return.

There are many reasons that could compel one to leave the vat system. It is possible to apply for deregistration of vat if 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 12 months, you sell your organization, there is a change in the legal status of your business, you either join another vat group or disband your present vat group, or else you want 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 make you a valid candidate for vat deregistration.

You can also voluntarily step out of the vat tax system if your taxable supplies are mainly or perhaps wholly zero rated. You can also do so if your input tax usually exceeds your output tax. However, in all the above circumstances you will need to provide required proof in addition to convince hmrc vat as to 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 validation you will have to contact your vat agent that should guide you on the exact process that must be followed so that you do not find yourself 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? 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 the reasons you have applied for deregistration in addition to providing the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets which you currently hold. You will also have to specify if you follow the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will usually reply in 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 the application then you’ll receive 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 have the ability to direct you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain circumstances compel you to make an application for cancellation of your vat certificate then you’ll have 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 the deregistration form you then should be out of the vat system within a month of filing for vat deregistration.