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 variety of reasons then you will want to learn all about the vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is pretty simple, you will still have to take into account vat and file a final vat return.

There are many reasons that may compel you to leave 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 therefore you expect them to drop below the vat threshold limit of ?70,000 within the next 1 year, you sell your business, there’s a alternation in the legal status of the business, you can 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 can make you a legitimate candidate for vat deregistration.

You may also voluntarily step out of the vat tax system if your taxable supplies are generally or perhaps wholly zero rated. You can even do so in case your input tax usually exceeds your output tax. However, in all the above circumstances you will need to provide required proof in addition to convince hmrc vat regarding the genuineness of the reason as to why you wish to cancel your vat registration. Once you are deregistered from vat then you’ll no longer be permitted to issue vat invoices or file vat returns.

For you to deregister yourself from vat registration number you will have to get hold of your vat agent that will guide you about the exact process that must be followed in order that you don’t find yourself making errors. You will have to fill 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 in this range. This form will require your vat registration number, business name and address, and may need 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 need 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 stick to the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In the event you do not receive a reply then you definitely should remind them. If hmrc is satisfied with your application then you’ll 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 situations compel you to apply for cancellation of your vat certificate then you will have to follow proper procedure as laid down by hmrc vat department. If your entire papers have been in order and if there are no mistakes in the deregistration form then you should be out of the vat system within a month of filing vat deregistration.