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. Although the procedure for canceling vat registration is quite simple, you still need to take into account vat and file a final vat return.

There are several reasons that could compel one to leave the vat system. You can apply for deregistration of vat if 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 within 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 existing vat group, or you intend 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 could make you a legitimate candidate for vat deregistration.

You may also voluntarily step out of the vat tax system in case your taxable supplies are mainly or even wholly zero rated. You can even do so in case 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 regarding the genuineness of the reason as to the reasons you wish to cancel your vat registration. Once you are deregistered from vat then you will not be allowed to issue vat invoices or file vat returns.

In order for you to deregister yourself from vatcontrol you will have to get hold of your vat agent that will guide you about the exact process that must be followed so that you do not 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 may need 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 need to mention the gross value including vat of stocks and assets that you currently hold. You will also need to specify if you follow 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 the event you don’t get a reply then you should remind them. If hmrc is content 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 now have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain circumstances compel you to apply 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 of the vat system in a month of filing for vat deregistration.