If you are a vat registered trader in the UK that desires to surrender your vat certificate for a number of reasons then you will want to learn everything about the vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is pretty simple, you still need to take into account vat and file your final vat return.
There are many reasons that could compel one to come out of the vat system. It is possible to apply for deregistration of vat if your business has collapsed and you have 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 organization, 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 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 step out of the vat tax system in case your taxable supplies are generally or even wholly zero rated. You can even 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 why you wish to cancel your vat registration. Once you are deregistered from vat then you will not be permitted to issue vat invoices or file vat returns.
In order for you to deregister yourself from vatregistrationnumber you will have to contact your vat agent that will guide you about the exact process that must be followed so that you don’t 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 will need you to tick the right reason as to why you have applied for deregistration along with providing the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets which you currently hold. You will also need to specify in the event you stick to 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 case you don’t get a reply then you 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 get a formal notice of exemption from registration on VAT8 form. Your vat agent will have the ability to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain circumstances compel you to make an application 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 when there are no mistakes in the deregistration form you then ought to be out of the vat system within a month of filing for vat deregistration.