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

If you’re a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a number of reasons then you will want to know all about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you will still have to account for vat and file your final vat return.

There are many reasons that may compel you to come out of the vat system. It is possible to apply for deregistration of vat if your business has collapsed and you’ve filed for insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 in the next 12 months, you sell your business, there is a change in the legal status of the business, you can 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 various other reasons which are specified by HM Revenue and Customs or hmrc vat department that can allow you to be a legitimate candidate for vat deregistration.

You can also voluntarily step out of the vat tax system in case your taxable supplies are generally or perhaps wholly zero rated. You can also do so 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 why you want to cancel your vat registration. Once you’re deregistered from vat then you’ll not be allowed to issue vat invoices or file vat returns.

In order for you to deregister yourself from vatvalidation.com you will need to get hold of your vat agent that will direct you about the exact process that must 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 within this range. This form will need your vat registration number, business name and address, and may need you to tick the appropriate reason as to the reasons you have requested deregistration along with providing the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets which 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 period of 3 weeks. In the event you don’t receive a reply then you definitely should remind them. If hmrc is satisfied with your application then you’ll receive 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 guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain situations compel you to apply for cancellation of the vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If your entire papers are in order and if there aren’t any mistakes in the deregistration form then you should be out from the vat system in a month of filing vat deregistration.