Know all 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 will want to know all about the vatregistrationnumber.com vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is quite simple, you still need to account for vat and file a final vat return.

There are many reasons that could compel you to come out of the vat system. It is possible to apply for deregistration of vat in case your business has collapsed and you’ve 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 business, there is a alternation in the legal status of the business, you can 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 could make you a legitimate candidate for vat deregistration.

You can also voluntarily leave the vat tax system in case your taxable supplies are generally or perhaps wholly zero rated. You can also do this if your input tax usually exceeds your output tax. However, out of all above circumstances you will need to provide required proof in addition to convince hmrc vat as to the genuineness of the reason as to why you wish to cancel your vat registration. Once you are deregistered from vat then you’ll no longer be permitted to issue vat invoices or file vat returns.

For you to definitely deregister yourself from you will have to contact your vat agent that should guide you about the exact process to 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? along with notice 700/1 among other notices in this range. This form will require your vat registration number, business name and address, and may need you to tick the right reason as to why you have requested deregistration along with providing the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets that you currently hold. You will also have to specify if you follow the vat cash accounting system.

After 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 get a reply then you definitely should remind them. If hmrc is content with your 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 be able 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 your 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 if there are no mistakes in your deregistration form you then ought to be out from the vat system within a month of filing for vat deregistration.