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

If you’re a vat registered trader in the UK 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. Even though the procedure for canceling vat registration is pretty simple, you still need to take into account vat and file your final vat return.

There are several reasons that may compel you to come out of the vat system. You can apply for deregistration of vat in case your business has collapsed and you have filed for insolvency, your taxable sales have dropped dramatically therefore 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 alternation in the legal status of the business, you can either join another vat group or disband your present 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 could allow you to be a valid candidate for vat deregistration.

You can also voluntarily leave the vat tax system if your taxable supplies are generally or even wholly zero rated. You can also do this in case your input tax usually exceeds your output tax. However, in all the above circumstances you will have 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 not be allowed to issue vat invoices or file vat returns.

In order for you to deregister yourself from vatvalidation you will need to get hold of your vat agent that should guide you on the exact process that must be followed in order that you do not 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 in this range. This form will need your vat registration number, business name and address, and will need you to tick the right reason as to the reasons you’ve applied for deregistration along with providing 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 have to specify if you follow the vat cash accounting system.

Once you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In the event you don’t get a reply then you definitely should remind them. If hmrc is satisfied with the application then you will get a formal notice of vat cancellation on VAT35 form as well as get a formal notice of exemption from registration on VAT8 form. Your vat agent will now be able to guide 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 will 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 you then should be out of the vat system in a month of filing vat deregistration.