If you are 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 everything about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is pretty simple, you will still need to take into account vat and file your final vat return.
There are several reasons that could compel one to come out of the vat system. You can make an application 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 within the next 1 year, you sell your business, there is a change in the legal status of the business, you can either join another vat group or disband your existing 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 leave the vat tax system if your taxable supplies are mainly or perhaps wholly zero rated. You can also do so in case your input tax usually exceeds your output tax https://vatverification.com. 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 why you wish to cancel your vat registration. Once you are deregistered from vat then you’ll no longer be permitted to issue vat invoices or file vat returns.
In order for you to deregister yourself from VAT you will need to contact your vat agent that will direct you on the exact process that must be followed so that you do not find yourself making errors. You will have to fill 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 require your vat registration number, business name and address, and may need you to tick the right reason as to why you have requested deregistration along with offering the required anticipated sales figures. You will also need to mention the gross value including vat of stocks and assets which you currently hold. Additionally, you will need to specify in the event you follow the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will often reply in a period of 3 weeks. In case you do not 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 receive 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 bad debts after deregistration.
If certain situations compel you to apply for cancellation of your vat certificate then you’ll need to follow proper procedure as laid down by hmrc vat department visit your url. If all your papers have been in order and when there aren’t any mistakes in the deregistration form then you should be out of the vat system in a month of filing for vat deregistration.