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 need to know 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 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’ve declared 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 organization, there’s a alternation in the legal status of the business, you can either join another vat group or disband your existing vat group, or 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 can make you a legitimate candidate for vat deregistration.

You may also voluntarily leave the vat tax system in case your taxable supplies are generally or perhaps wholly zero rated. You can even do this if your input tax usually exceeds your output tax http://vatverification.com. However, out of all above circumstances you will have 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’re deregistered from vat then you’ll no longer be allowed to issue vat invoices or file vat returns.

In order for you to deregister yourself from VAT you will have 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 have 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 in this range. This form will need your vat registration number, business name and address, and may need 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 stick to the vat cash accounting system.

Once you have filled up the vat deregistration form then hmrc will usually reply in a period of 3 weeks. In case you do not get a reply then you definitely should remind them. If hmrc is satisfied with your application then you will receive 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 have the ability to guide 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 the vat certificate then you’ll need to follow proper procedure as laid down by hmrc vat department this site. If all your papers are in order and if there are no mistakes in the deregistration form you then should be out from the vat system in a month of filing vat deregistration.