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

If you are a vat registered trader in the UK that wants to surrender your vat certificate for a number of reasons then you need to know all about the www.vatregistrationnumber.com vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you still need to account for 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 declared 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 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 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 valid candidate for vat deregistration.

You can also voluntarily leave the vat tax system if your taxable supplies are mainly or even wholly zero rated. You can even do this in case your input tax usually exceeds your output tax. However, out of all above circumstances you will need to provide required proof in addition to convince hmrc vat as to the genuineness of the reason as to the reasons 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.

For you to deregister yourself from you will have to contact your vat agent that should guide you about the exact process that must be followed so 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 within this range. This form will require your vat registration number, business name and address, and will require you to tick the appropriate reason as to the reasons you’ve applied for deregistration along with offering 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 within a time period of 3 weeks. In case you do not get a reply then you definitely should remind them. If hmrc is satisfied with your application then you will receive 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 guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain situations compel you to make an application for cancellation of your vat certificate then you’ll need 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 you then should be out from the vat system in a month of filing for vat deregistration.