Know everything 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 learn everything about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is quite simple, you still need to take into account vat and file your final vat return.

There are several reasons that could compel you to leave the vat system. You can apply for deregistration of vat if your business has collapsed and you’ve filed for insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 in the next 12 months, you sell your organization, there is a alternation in the legal status of the 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 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 step out of the vat tax system if your taxable supplies are generally or even wholly zero rated. You can also do this in case your input tax usually exceeds your output tax http://vatverification.com. However, out of all above circumstances you will need to provide required proof as well as convince hmrc vat as to the genuineness of the reason as to why you want to cancel your vat registration. Once you’re deregistered from vat then you will no longer be allowed to issue vat invoices or file vat returns.

In order for you to definitely deregister yourself from VAT you will have to get hold of your vat agent that should guide you on the exact process to be followed so that you don’t find yourself making errors. You will need to fill up the VAT 7 vat form once 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 will need you to tick the appropriate reason as to the reasons you have 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 which you currently hold. Additionally, you will have to specify if you stick to 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 don’t receive a reply then you should remind them. If hmrc is content with the 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 direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain circumstances compel you to apply for cancellation of your vat certificate then you’ll have to follow proper procedure as laid down by hmrc vat department get the facts. If your entire papers are in order and if there are no mistakes in your deregistration form then you should be out of the vat system in a month of filing vat deregistration.