If you are a vat registered trader in the United Kingdom 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 take into account vat and file your final vat return.
There are several reasons that could compel you to come out of the vat system. You can make an application 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 organization, there’s a alternation in the legal status of the business, you either join another vat group or disband your existing vat group, or you intend 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 could make you a legitimate 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 even do so if 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 no longer be permitted to issue vat invoices or file vat returns.
For you to definitely deregister yourself from https://vatvalidation.com you will have to get hold of your vat agent that will guide you on the exact process that must be followed so that you do not end up making errors. You will have 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 within 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’ve requested deregistration along with offering the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets that 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 don’t get a reply then you definitely should remind them. If hmrc is content with the application then you will receive 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 now have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain situations compel you to make an application for cancellation of your vat certificate then you will have to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and if there aren’t any mistakes in your deregistration form then you should be out of the vat system within a month of filing vat deregistration.