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

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

There are many reasons that could compel you to come out of the vat system. You can apply for deregistration of vat if your business has collapsed and you’ve filed for insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 within the next 12 months, 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 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 could 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 perhaps wholly zero rated. You can also 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 as well as 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.

For you to definitely deregister yourself from www.vatvalidation.com you will need to contact your vat agent that will direct you about the exact process that must be followed in order 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? together with notice 700/1 among other notices in this range. This form will need your vat registration number, business name and address, and will need you to tick the appropriate reason as to why you’ve requested deregistration along with offering the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets that you currently hold. You will also have to specify in the event you stick to the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will often reply within a time period of 3 weeks. In the event you don’t receive a reply then you definitely should remind them. If hmrc is content with the application then you will get 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 be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain situations 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. If your entire papers have been in order and when there aren’t any mistakes in the deregistration form then you should be out of the vat system in a month of filing for vat deregistration.