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 variety of reasons then you need to learn everything about the http://vatregistrationnumber.com vat deregistration process to cancel your vat number. Although the process of canceling vat registration is quite simple, you still need to take into account vat and file your final vat return.

There are many reasons that could compel one to come out of the vat system. You can apply for deregistration of vat if your business has collapsed and you’ve 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 is a change in the legal status of your business, you either join another vat group or disband your present vat group, or 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 make you a valid candidate for vat deregistration.

You can also voluntarily leave the vat tax system if your taxable supplies are generally or perhaps wholly zero rated. You can even 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 the reasons you wish to cancel your vat registration. Once you’re deregistered from vat then you will no longer be permitted to issue vat invoices or file vat returns.

In order for you to deregister yourself from you will need to contact your vat agent that should direct you on the exact process to be followed in order that you do not find yourself 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? together 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 appropriate reason as to why you’ve applied for deregistration along with offering the required anticipated sales figures. You will also have 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 period of 3 weeks. In the event you do not get a reply then you definitely should remind them. If hmrc is satisfied with your application then you will receive 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 be able 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 your vat certificate then you’ll have to follow proper procedure as laid down by hmrc vat department. If your entire papers have been in order and when there aren’t any mistakes in your deregistration form then you should be out from the vat system in a month of filing vat deregistration.