If you’re a vat registered trader in the UK that desires to surrender your vat certificate for a number of reasons then you will want to know everything about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you still need to account for vat and file your final vat return.

There are several reasons that could compel one to leave the vat system. You can make an application for deregistration of vat in case your business has collapsed and you have declared insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 within the next 12 months, you sell your organization, there’s 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 various other reasons which are specified by HM Revenue and Customs or hmrc vat department that can allow you to be a valid candidate for vat deregistration.

You may also voluntarily leave the vat tax system in case your taxable supplies are generally or perhaps wholly zero rated. You can even do this if your input tax usually exceeds your output tax http://vatverification.com. However, in all the above circumstances you will need 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 will no longer be allowed to issue vat invoices or file vat returns.

For you to definitely deregister yourself from VAT you will have to contact your vat agent that will guide you on the exact process to be followed in order that you do not end up making errors. You will need to fill up 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 within this range. This form will require your vat registration number, business name and address, and may require you to tick the right reason as to the reasons you’ve requested deregistration along with offering the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets that you currently hold. You will also need 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 do not receive a reply then you should remind them. If hmrc is satisfied with your application then you will get 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 have the ability to guide 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 the vat certificate then you’ll have to follow proper procedure as laid down by hmrc vat department read full report. If all your papers are in order and when there are no mistakes in the deregistration form then you ought to be out of the vat system in a month of filing vat deregistration.