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

If you’re a vat registered trader in the UK that desires to surrender your vat certificate for a number of reasons then you need to learn all about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is pretty simple, you will still need to account for vat and file a final vat return.

There are many reasons that may compel you to leave the vat system. You can apply for deregistration of vat if your business has collapsed and you have declared insolvency, your taxable sales have dropped dramatically therefore 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 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 various other reasons which are specified by HM Revenue and Customs or hmrc vat department that could make you a valid candidate for vat deregistration.

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

In order for you to deregister yourself from vatregistrationnumber you will have to get hold of your vat agent that will guide you on the exact process to be followed so that you don’t end up making errors. You will need to fill 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 have applied for deregistration along with offering the required anticipated sales figures. Additionally, you will 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 in a time period of 3 weeks. In the event you do not receive a reply then you definitely should remind them. If hmrc is content with your application then you will get a formal notice of vat cancellation on VAT35 form as well as 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 bad debts after deregistration.

If certain circumstances compel you to make an application for cancellation of the 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 when there aren’t any mistakes in your deregistration form then you should be out from the vat system in a month of filing for vat deregistration.