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

If you are a vat registered trader in the United Kingdom that desires 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. Although the process of canceling vat registration is pretty simple, you still need to account for vat and file your final vat return.

There are many reasons that could compel one to leave the vat system. It is possible to make an application for deregistration of vat if 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 organization, 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 which are specified by HM Revenue and Customs or hmrc vat department that could make you a valid candidate for vat deregistration.

You can also voluntarily step out of the vat tax system in case your taxable supplies are generally or even wholly zero rated. You can also do so in case your input tax usually exceeds your output tax www.vatverification.com. However, in all the above circumstances you will need to provide required proof as well as convince hmrc vat as to the genuineness of the reason as to the reasons you want to cancel your vat registration. Once you're deregistered from vat then you will not be permitted to issue vat invoices or file vat returns.

For you to definitely deregister yourself from VAT you will have to contact your vat agent that should guide you about the exact process that must be followed in order that you do not find yourself making errors. You will need 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 may require you to tick the right reason as to the reasons you've requested deregistration in addition to providing the required anticipated sales figures. You will also need to mention the gross value including vat of stocks and assets that you currently hold. You will also need to specify in the event you stick to the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will usually reply in a time period of 3 weeks. In the event you don't get a reply then you should remind them. If hmrc is content with the application then you will get 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 direct 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 will need to follow proper procedure as laid down by hmrc vat department find here. If your entire papers are in order and if there aren't any mistakes in your deregistration form then you should be out of the vat system in a month of filing for vat deregistration.