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

If you are a vat registered trader in the UK that wants to surrender your vat certificate for a number of reasons then you need to know everything about the vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is pretty simple, you will still have to take into account vat and file a final vat return.

There are several 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 change in the legal status of the business, you can 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 mainly or even wholly zero rated. You can also do this in case 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 the reasons you want to cancel your vat registration. Once you are deregistered from vat then you’ll not be allowed to issue vat invoices or file vat returns.

For you to definitely deregister yourself from vatnumbers.com you will need to get hold of your vat agent that will guide you on the exact process that must be followed in order that you don’t end up 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 need your vat registration number, business name and address, and will require you to tick the appropriate reason as to the reasons you have requested deregistration along with providing the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets which you currently hold. You will also need to specify in the event you stick to the vat cash accounting system.

Once 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 get a reply then you definitely should remind them. If hmrc is satisfied with your application then you will get 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 debt 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 all your papers are in order and when there aren’t any mistakes in the deregistration form then you ought to be out of the vat system in a month of filing for vat deregistration.