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

If you are a vat registered trader in the UK that desires to surrender your vat certificate for a number of reasons then you need to learn everything about the vatregistrationnumber vat deregistration process to cancel your vat number. Although the process of 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 may compel you to leave the vat system. You can apply for deregistration of vat if your business has collapsed and you’ve filed for insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 in the next 1 year, you sell your business, there is a change in the legal status of your 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 can make you a legitimate 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 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 the reasons you want to cancel your vat registration. Once you are deregistered from vat then you’ll not be permitted to issue vat invoices or file vat returns.

For you to definitely deregister yourself from you will need to contact your vat agent that should direct you on the exact process that must be followed in order that you do not end up 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? along with notice 700/1 among other notices within this range. This form will need 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 in addition to 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. You will also have to specify in the event you follow 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 don’t receive a reply then you should remind them. If hmrc is satisfied with your application then you’ll get a formal notice of vat cancellation on VAT35 form as well as 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 debt after deregistration.

If certain circumstances compel you to make an application for cancellation of the vat certificate then you will 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 should be out from the vat system within a month of filing vat deregistration.