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

If you are a vat registered trader in the UK that desires to surrender your vat certificate for a variety of reasons then you will want to learn 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 your final vat return.

There are several reasons that could compel you to come out of the vat system. It is possible to make an application for deregistration of vat in case 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 12 months, you sell your organization, there is a alternation in the legal status of the business, you either join another vat group or disband your existing vat group, or else you intend 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 legitimate 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. However, in all the above circumstances you will need to provide required proof in addition to convince hmrc vat as to the genuineness of the reason as to the reasons you want to cancel your vat registration. Once you are deregistered from vat then you'll no longer be allowed to issue vat invoices or file vat returns.

In order for you to deregister yourself from you will have to get hold of your vat agent that will direct you about the exact process that must be followed in order that you do not end up 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? together with notice 700/1 among other notices in this range. This form will require your vat registration number, business name and address, and will require you to tick the appropriate reason as to the reasons you've requested deregistration along with offering the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets which you currently hold. Additionally, you will need to specify if you stick to the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will often reply within a time period of 3 weeks. In the event you don't receive a reply then you definitely 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 now be able to direct 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 your entire papers are in order and if there are no mistakes in your deregistration form you then ought to be out from the vat system within a month of filing for vat deregistration.