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

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

There are many reasons that may compel you to come out of the vat system. It is possible to apply 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 12 months, you sell your organization, 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 else 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 could allow you to be a legitimate candidate for vat deregistration.

You may also voluntarily step out of the vat tax system in case your taxable supplies are generally 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 need to provide required proof as well as 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.

In order for you to definitely deregister yourself from www.vatvalidation.com you will need to contact your vat agent that should guide you on the exact process that must be followed so that you don’t find yourself 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? along with notice 700/1 among other notices in 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 why you have requested deregistration along with offering the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets that you currently hold. You will also need 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 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 be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts 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 all your papers are in order and if there aren’t any mistakes in your deregistration form you then should be out of the vat system within a month of filing vat deregistration.