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

If you're a vat registered trader in the UK that desires to surrender your vat certificate for a variety of reasons then you will want to know all about the vatregistrationnumber.com vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is pretty simple, you will still need to account for vat and file your final vat return.

There are many reasons that may compel one to come out of the vat system. It is possible to make an application for deregistration of vat if 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 in the next 1 year, you sell your organization, there's a alternation in the legal status of the 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 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 may also voluntarily leave the vat tax system in case 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. 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 wish to cancel your vat registration. Once you are deregistered from vat then you will no longer be allowed to issue vat invoices or file vat returns.

In order for you to deregister yourself from you will need to get hold of your vat agent that will guide you about 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 after 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 need your vat registration number, business name and address, and may require you to tick the right reason as to the reasons you have requested deregistration in addition to 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 need to specify in the event you follow the vat cash accounting system.

Once you have filled up the vat deregistration form then hmrc will usually reply in a period of 3 weeks. In case you don't receive 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 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 situations compel you to apply 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 are no mistakes in your deregistration form you then ought to be out from the vat system in a month of filing vat deregistration.