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

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

There are many reasons that may compel one to come out of the vat system. You can apply for deregistration of vat in case your business has collapsed and you've declared insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 within the next 12 months, you sell your organization, there's a alternation in the legal status of your business, you either join another vat group or disband your existing vat group, or you intend 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 can make you a valid candidate for vat deregistration.

You may also voluntarily leave the vat tax system if your taxable supplies are generally or perhaps wholly zero rated. You can even do so if 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 want to cancel your vat registration. Once you are deregistered from vat then you will not be allowed to issue vat invoices or file vat returns.

In order for you to definitely deregister yourself from http://vatvalidation.com you will need to get hold of your vat agent that will direct you on the exact process to be followed so that you don't end up making errors. You will have to fill up the VAT 7 vat form once 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 require your vat registration number, business name and address, and will need you to tick the appropriate reason as to the reasons you've applied for deregistration along with offering the required anticipated sales figures. You will also need to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will have 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 the event you do not get a reply then you definitely should remind them. If hmrc is content with the 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 be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain circumstances 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. If all your papers have been in order and when 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.