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

If you are a vat registered trader in the United Kingdom that wants to surrender your vat certificate for a variety of reasons then you need to learn all about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you will still need 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 make an application for deregistration of vat if your business has collapsed and you’ve 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 1 year, you sell your business, there is a change in the legal status of your business, you either join another vat group or disband your existing 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 legitimate candidate for vat deregistration.

You can also voluntarily leave the vat tax system in case your taxable supplies are mainly or perhaps wholly zero rated. You can also do so in case your input tax usually exceeds your output tax vat verification. However, in all the above circumstances you will need to provide required proof as well as 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 you will need to contact your vat agent that should guide you about the exact process that must be followed so that you don’t 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 in 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’ve requested deregistration in addition to providing the required anticipated sales figures. You will also have 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.

After you have filled up the vat deregistration form then hmrc will usually reply within a time period of 3 weeks. In case you do not get a reply then you should remind them. If hmrc is content with your 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 the vat certificate then you will need to follow proper procedure as laid down by hmrc vat department more helpful hints. If your entire papers have been in order and if there are no mistakes in your deregistration form then you should be out from the vat system within a month of filing for vat deregistration.