Know everything 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 number of reasons then you need to know everything about the vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is quite simple, you still have to take into account vat and file your final vat return.

There are several reasons that may compel you to leave the vat system. You can 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 in the next 12 months, you sell your organization, there is a change in the legal status of your business, you can either join another vat group or disband your existing vat group, or 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 make you a legitimate candidate for vat deregistration.

You can also voluntarily leave the vat tax system if your taxable supplies are mainly or even wholly zero rated. You can even do this in case 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 want to cancel your vat registration. Once you’re deregistered from vat then you’ll not be permitted to issue vat invoices or file vat returns.

For you to definitely deregister yourself from vatnumbers.com you will need to get hold of your vat agent that will guide you about the exact process that must be followed so that you do not end up making errors. You will have 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 need your vat registration number, business name and address, and may require you to tick the right reason as to the reasons you’ve requested 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 stick to the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will often reply within a period of 3 weeks. In the event you don’t receive a reply then you should remind them. If hmrc is satisfied with your application then you will 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 be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain circumstances 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 all your papers are in order and when there aren’t any mistakes in the deregistration form you then should be out from the vat system in a month of filing for vat deregistration.