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 number of reasons then you need to know everything about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is pretty simple, you still have to account for vat and file your 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 if your business has collapsed and you have filed for insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 within the next 12 months, you sell your business, there’s a change in the legal status of the business, you can either join another vat group or disband your existing vat group, or you want to join the agricultural flat rate vat scheme. There are various other reasons that are specified by HM Revenue and Customs or hmrc vat department that can make you a legitimate candidate for vat deregistration.

You may also voluntarily leave the vat tax system in case your taxable supplies are generally or even wholly zero rated. You can also do this if your input tax usually exceeds your output tax www.vatverification.com. 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 why you wish to cancel your vat registration. Once you are deregistered from vat then you’ll no longer be permitted to issue vat invoices or file vat returns.

For you to definitely deregister yourself from VAT you will need to contact your vat agent that will direct you about the exact process to be followed so that you do not end up making errors. You will need 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 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 why you’ve 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 if you follow the vat cash accounting system.

Once 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 get a reply then you definitely should remind them. If hmrc is satisfied with your application then you’ll get a formal notice of vat cancellation on VAT35 form as well as get a formal notice of exemption from registration on VAT8 form. Your vat agent will be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain circumstances 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 click here. If your entire papers have been in order and when there are no mistakes in the deregistration form you then should be out of the vat system within a month of filing for vat deregistration.