Know all 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 number of reasons then you will want to know everything about the http://vatregistrationnumber.com vat deregistration process to cancel your vat number. Although the process of canceling vat registration is pretty simple, you will still need to account for vat and file your final vat return.

There are many reasons that may compel one to come out of the vat system. You can apply for deregistration of vat if your business has collapsed and you have 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 organization, there’s a change in the legal status of your business, you can either join another vat group or disband your existing vat group, or else you intend 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 allow you to be a legitimate candidate for vat deregistration.

You can also voluntarily step out of the vat tax system if your taxable supplies are mainly or perhaps wholly zero rated. You can even do this if your input tax usually exceeds your output tax. However, in all the above circumstances you will need to provide required proof as well as convince hmrc vat as to 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 allowed to issue vat invoices or file vat returns.

In order for you to definitely deregister yourself from you will have to contact your vat agent that should guide you about the exact process to be followed so that you don’t end up making errors. You will have to fill up 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 within this range. This form will need your vat registration number, business name and address, and will require you to tick the right reason as to the reasons you have applied for deregistration in addition to offering the required anticipated sales figures. You will also need to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will have 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 time period of 3 weeks. In case you don’t receive a reply then you should remind them. If hmrc is content 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 now be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain situations compel you to make an application for cancellation of your vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and when there aren’t any mistakes in your deregistration form then you ought to be out of the vat system within a month of filing vat deregistration.