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 number of reasons then you need to learn everything about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you will still have to account for vat and file a final vat return.

There are many reasons that could compel you to leave the vat system. It is possible to apply for deregistration of vat if 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 in the next 1 year, you sell your organization, there is a alternation 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 various other reasons that are specified by HM Revenue and Customs or hmrc vat department that can allow you to be a valid candidate for vat deregistration.

You can also voluntarily leave the vat tax system in case your taxable supplies are mainly or even wholly zero rated. You can also do so if your input tax usually exceeds your output tax. However, out of all above circumstances you will have to provide required proof in addition to convince hmrc vat as to the genuineness of the reason as to the reasons you want 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 deregister yourself from www.vatnumbers.com you will have to contact your vat agent that should direct you about the exact process that must be followed so that you don’t find yourself 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? together with notice 700/1 among other notices within this range. This form will need your vat registration number, business name and address, and may need you to tick the appropriate reason as to why you have requested deregistration in addition to providing 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 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 content 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 now be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain situations compel you to apply for cancellation of the vat certificate then you’ll need 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 from the vat system within a month of filing vat deregistration.