If you’re a vat registered trader in the UK that desires to surrender your vat certificate for a number of reasons then you will want to learn all about the vatregistrationnumber vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is quite simple, you will still have to account for vat and file a final vat return.
There are many reasons that may compel one to come out of the vat system. You can apply for deregistration of vat in case your business has collapsed and you have 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 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 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 can allow you to be a valid candidate for vat deregistration.
You can also voluntarily leave the vat tax system if your taxable supplies are generally or even wholly zero rated. You can even do so in case your input tax usually exceeds your output tax. However, out of all above circumstances you will have to provide required proof in addition to convince hmrc vat regarding the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you’re deregistered from vat then you will not be permitted to issue vat invoices or file vat returns.
In order for you to deregister yourself from you will need to get hold of your vat agent that will guide you about the exact process that must 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? together with notice 700/1 among other notices within this range. This form will require your vat registration number, business name and address, and will require you to tick the right reason as to the reasons you’ve requested deregistration in addition to offering 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 need to specify if you stick to the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will often reply within a period of 3 weeks. In the event you don’t receive a reply then you should remind them. If hmrc is satisfied with the application then you will get 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 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 your vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If all your papers are in order and if there aren’t any mistakes in the deregistration form then you ought to be out of the vat system within a month of filing vat deregistration.