Know all 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 will want to know all about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you still need to account for vat and file a final vat return.

There are several reasons that could compel one to come out of the vat system. It is possible to apply for deregistration of vat in case your business has collapsed and you’ve declared insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 in the next 1 year, you sell your business, there’s a change in the legal status of the business, you 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 can allow you to be a legitimate candidate for vat deregistration.

You can also voluntarily step out of the vat tax system in case your taxable supplies are mainly or perhaps wholly zero rated. You can also do so if 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 want to cancel your vat registration. Once you are deregistered from vat then you will no longer be allowed to issue vat invoices or file vat returns.

For you to definitely deregister yourself from www.vatvalidation.com you will have to get hold of your vat agent that should direct you on the exact process that must be followed so that you don’t end up making errors. You will need to fill up the VAT 7 vat form once 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 require your vat registration number, business name and address, and will need you to tick the right reason as to the reasons you have applied for deregistration along with providing the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets which you currently hold. You will also have to specify if you follow the vat cash accounting system.

Once you have filled up the vat deregistration form then hmrc will often reply within a time period of 3 weeks. In the event you do not get a reply then you should remind them. If hmrc is satisfied with the application then you’ll get a formal notice of vat cancellation on VAT35 form and also get a formal notice of exemption from registration on VAT8 form. Your vat agent will have the ability to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain situations 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 your entire papers have been in order and when there are no mistakes in your deregistration form you then ought to be out from the vat system within a month of filing vat deregistration.