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

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

There are many reasons that may compel you to leave the vat system. You can apply for deregistration of vat in case 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 12 months, you sell your organization, there’s a change in the legal status of your 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 that are specified by HM Revenue and Customs or hmrc vat department that could allow you to be 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 also do this if your input tax usually exceeds your output tax. However, in all the above circumstances you will have to provide required proof in addition to convince hmrc vat as to the genuineness of the reason as to why you wish to cancel your vat registration. Once you’re deregistered from vat then you’ll no longer be allowed to issue vat invoices or file vat returns.

In order for you to deregister yourself from vatnumbers.com you will need to contact your vat agent that will guide you on the exact process that must be followed in order that you don’t end up making errors. You will need 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 within this range. This form will need your vat registration number, business name and address, and may need you to tick the right reason as to why you’ve requested deregistration in addition to providing the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets which you currently hold. Additionally, you will need to specify if you follow the vat cash accounting system.

Once you have filled up the vat deregistration form then hmrc will often reply in a time period of 3 weeks. In case you don’t get a reply then you should remind them. If hmrc is content with the application then you’ll 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 bad debts after deregistration.

If certain circumstances compel you to make an application for cancellation of your vat certificate then you’ll need 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 then you should be out of the vat system within a month of filing vat deregistration.