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

If you’re a vat registered trader in the United Kingdom that wants to surrender your vat certificate for a variety 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 still have to account for vat and file a final vat return.

There are several reasons that may compel one to come out of the vat system. It is possible to make an application 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 in the next 1 year, you sell your business, 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 which are specified by HM Revenue and Customs or hmrc vat department that could make you a legitimate candidate for vat deregistration.

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

In order for you to definitely deregister yourself from VAT you will need to contact your vat agent that will guide you on the exact process to be followed so that you do not find yourself making errors. You will need to fill up 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 require your vat registration number, business name and address, and may require you to tick the right reason as to the reasons you have requested deregistration along with providing the required anticipated sales figures. You will also have 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.

Once you have filled up the vat deregistration form then hmrc will usually reply in a time period of 3 weeks. In case you do not receive a reply then you should remind them. If hmrc is satisfied with your application then you’ll receive 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 now be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain circumstances compel you to apply for cancellation of your vat certificate then you will have to follow proper procedure as laid down by hmrc vat department helpful hints. If your entire papers have been in order and if there are no mistakes in the deregistration form you then should be out from the vat system in a month of filing for vat deregistration.