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

If you’re a vat registered trader in the UK that wants 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 process of canceling vat registration is quite simple, you will still need to account for vat and file a final vat return.

There are several reasons that could compel you to come out of the vat system. You can 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 in the next 12 months, you sell your business, there is a alternation in the legal status of your business, you 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 valid candidate for vat deregistration.

You can also voluntarily leave the vat tax system if your taxable supplies are mainly or perhaps 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 in addition to convince hmrc vat as to the genuineness of the reason as to why you wish to cancel your vat registration. Once you are deregistered from vat then you will no longer be allowed to issue vat invoices or file vat returns.

In order for you to deregister yourself from www.vatnumbers.com you will have to contact your vat agent that should guide you about the exact process that must be followed in order that you don’t end up 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 need your vat registration number, business name and address, and may need you to tick the right reason as to why you’ve requested deregistration along with providing the required anticipated sales figures. You will also need to mention the gross value including vat of stocks and assets which you currently hold. You will also need to specify if you stick to the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will often reply in a period of 3 weeks. In case you do not receive a reply then you should remind them. If hmrc is satisfied with the application then you will get 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 have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain circumstances 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 aren’t any mistakes in your deregistration form you then ought to be out of the vat system within a month of filing for vat deregistration.