If you’re a vat registered trader in the UK that desires 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 procedure for canceling vat registration is quite simple, you will 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. It is possible to make an application for deregistration of vat if 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 within the next 1 year, you sell your organization, there’s a alternation in the legal status of your business, you either join another vat group or disband your existing vat group, or you intend 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 could allow you to be a valid candidate for vat deregistration.
You can also voluntarily step out of the vat tax system if your taxable supplies are generally or perhaps wholly zero rated. You can also do so if your input tax usually exceeds your output tax. However, out of all above circumstances you will need 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’re deregistered from vat then you’ll 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 direct you about the exact process to be followed in order that you don’t find yourself making errors. You will need to fill the VAT 7 vat form after 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 need your vat registration number, business name and address, and may need you to tick the right reason as to the reasons you’ve 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 that you currently hold. You will also 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 period of 3 weeks. In the event you do not receive a reply then you should remind them. If hmrc is content with the application then you will receive a formal notice of vat cancellation on VAT35 form and also 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 debt after deregistration.
If certain situations compel you to apply 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 are in order and when there are no mistakes in the deregistration form then you should be out of the vat system within a month of filing vat deregistration.