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

If you’re a vat registered trader in the UK 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. Even though the procedure for canceling vat registration is pretty simple, you will still have to account for vat and file a final vat return.

There are several reasons that may compel you to come out of the vat system. It is possible to make an application for deregistration of vat if your business has collapsed and you’ve 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 organization, there is a change 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 that are specified by HM Revenue and Customs or hmrc vat department that could allow you to be a legitimate candidate for vat deregistration.

You may also voluntarily leave the vat tax system if your taxable supplies are generally or perhaps wholly zero rated. You can even do so in case your input tax usually exceeds your output tax. However, in all the above circumstances you will need to provide required proof as well as convince hmrc vat as to 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 vatregistrationnumber.com you will need to get hold of your vat agent that will direct you on the exact process that must be followed so that you do not find yourself making errors. You will have 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 in this range. This form will require your vat registration number, business name and address, and will need you to tick the right reason as to why you have requested deregistration in addition to providing the required anticipated sales figures. Additionally, you will have 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 do not get a reply then you definitely should remind them. If hmrc is satisfied with the 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 now be able to direct 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 the vat certificate then you’ll 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 for vat deregistration.