If you’re a vat registered trader in the UK that desires to surrender your vat certificate for a number of reasons then you need to know all about the vatregistrationnumber.com vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you will still have to account for vat and file a final vat return.
There are several reasons that could compel one to leave the vat system. You can make an application for deregistration of vat in case your business has collapsed and you have filed for insolvency, your taxable sales have dropped dramatically and you expect them to drop below the vat threshold limit of ?70,000 within the next 12 months, 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 else you want to join the agricultural flat rate vat scheme. There are various other reasons which 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 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, out of all above circumstances you will have to provide required proof as well as convince hmrc vat as to the genuineness of the reason as to why you want to cancel your vat registration. Once you are deregistered from vat then you will no longer be permitted to issue vat invoices or file vat returns.
For you to deregister yourself from you will have to get hold of your vat agent that will guide you on the exact process to be followed in order that you do not end up making errors. You will need to fill the VAT 7 vat form once you have read and understood vat notice 700/11 on ?Canceling your registration? together with notice 700/1 among other notices within this range. This form will require your vat registration number, business name and address, and will need you to tick the right reason as to the reasons you have applied for deregistration along with offering the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets that you currently hold. You will also need to specify if you stick to the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will usually reply in a time period of 3 weeks. In case you don’t get a reply then you definitely should remind them. If hmrc is satisfied with your application then you’ll receive 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 have the ability to guide 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 the vat certificate then you will have to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and if there aren’t any mistakes in the deregistration form you then should be out of the vat system in a month of filing for vat deregistration.