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

If you’re a vat registered trader in the UK that wants to surrender your vat certificate for a variety of reasons then you will want to know everything about the vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is pretty simple, you will still have to take into account vat and file a final vat return.

There are several reasons that could compel you to leave the vat system. You can apply for deregistration of vat in case your business has collapsed and you’ve 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 organization, there’s a alternation in the legal status of your business, you 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 can allow you to be a legitimate candidate for vat deregistration.

You may also voluntarily step out of the vat tax system if 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, in all the above circumstances you will have to provide required proof in addition to convince hmrc vat regarding the genuineness of the reason as to why 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 deregister yourself from vatvalidation.com you will need to contact your vat agent that will direct you about the exact process that must be followed in order that you don’t find yourself 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 within this range. This form will require your vat registration number, business name and address, and will require 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 have to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will 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 within a period of 3 weeks. In the event you do not get 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 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 bad debts after deregistration.

If certain situations 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 the deregistration form you then ought to be out of the vat system in a month of filing for vat deregistration.