If you’re a vat registered trader in the UK that desires to surrender your vat certificate for a variety of reasons then you will want to know everything about the vatregistrationnumber vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you still need 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 make an application 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 in the next 12 months, you sell your business, there is a change in the legal status of your business, you can either join another vat group or disband your existing 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 could allow you to be a valid candidate for vat deregistration.
You may also voluntarily leave the vat tax system if your taxable supplies are mainly or even wholly zero rated. You can even do so if 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 want to cancel your vat registration. Once you are deregistered from vat then you’ll not be permitted to issue vat invoices or file vat returns.
For you to deregister yourself from you will have to contact your vat agent that will direct you on the exact process to be followed so 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? along with notice 700/1 among other notices within this range. This form will need your vat registration number, business name and address, and will require you to tick the right reason as to why you’ve requested deregistration in addition to providing the required anticipated sales figures. You will also need to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will have to specify if you follow the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will often reply in a time period of 3 weeks. In the event you do not get a reply then you definitely should remind them. If hmrc is content with your application then you’ll get a formal notice of vat cancellation on VAT35 form and also receive a formal notice of exemption from registration on VAT8 form. Your vat agent will be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts 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. If all your papers have been in order and if there aren’t any mistakes in the deregistration form then you should be out from the vat system within a month of filing for vat deregistration.