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

If you are a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a number of reasons then you need to know all about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you will still need to take into account vat and file your final vat return.

There are many reasons that could compel one to leave the vat system. You can apply for deregistration of vat in case 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 organization, there is a alternation in the legal status of your business, you can either join another vat group or disband your existing vat group, or else you want to join the agricultural flat rate vat scheme. There are various other reasons that are specified by HM Revenue and Customs or hmrc vat department that can allow you to be a valid candidate for vat deregistration.

You may also voluntarily leave the vat tax system in case your taxable supplies are mainly or even wholly zero rated. You can even do this if 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 regarding the genuineness of the reason as to the reasons you want to cancel your vat registration. Once you’re deregistered from vat then you’ll no longer be allowed to issue vat invoices or file vat returns.

For you to deregister yourself from http://vatnumbers.com you will have to get hold of your vat agent that will direct you about the exact process to be followed so 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 will 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 have to mention the gross value including vat of stocks and assets that you currently hold. You will also have to specify if you follow the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will usually reply within a time period of 3 weeks. In the event you don’t get a reply then you should remind them. If hmrc is content with your application then you’ll receive 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 have the ability to direct 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 the vat certificate then you will have to follow proper procedure as laid down by hmrc vat department. If your entire papers are in order and if there are no mistakes in the deregistration form you then ought to be out from the vat system within a month of filing vat deregistration.