If you’re a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a number of reasons then you will want to know everything about the vat deregistration process to cancel your vat number. Although the process of canceling vat registration is quite simple, you still have to account for vat and file a final vat return.
There are several reasons that could compel you to leave the vat system. You can apply for deregistration of vat if your business has collapsed and you’ve filed for insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 in the next 1 year, you sell your business, 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 allow you to be a valid candidate for vat deregistration.
You can also voluntarily step out of the vat tax system in case your taxable supplies are mainly or even wholly zero rated. You can even do this in case your input tax usually exceeds your output tax http://vatverification.com. However, in all the 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’ll no longer be permitted to issue vat invoices or file vat returns.
For you to deregister yourself from VAT you will have to get hold of your vat agent that should direct you about the exact process that must be followed so 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 in this range. This form will need your vat registration number, business name and address, and will need you to tick the appropriate reason as to why you’ve applied for deregistration along with providing 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 have to specify if you follow 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 case you do not get a reply then you definitely should remind them. If hmrc is content with your 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 have the ability 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 the vat certificate then you’ll need to follow proper procedure as laid down by hmrc vat department next page. If all your papers are in order and if there aren’t any mistakes in the deregistration form then you should be out of the vat system in a month of filing vat deregistration.