Know everything 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 number of reasons then you need to know everything about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is quite simple, you still need to account for vat and file your final vat return.

There are many reasons that may compel you to leave the vat system. It is possible to apply for deregistration of vat in case 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 within the next 1 year, you sell your organization, there is a change in the legal status of the business, you can either join another vat group or disband your existing vat group, or else 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 can allow you to be a legitimate candidate for vat deregistration.

You can also voluntarily leave the vat tax system if your taxable supplies are mainly or even wholly zero rated. You can even do so in case your input tax usually exceeds your output tax. However, in all the 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 not be allowed to issue vat invoices or file vat returns.

In order for you to deregister yourself from www.vatcontrol.com you will have to get hold of your vat agent that will guide you on the exact process to be followed in order that you don't find yourself making errors. You will need to fill up the VAT 7 vat form after you have read and understood vat notice 700/11 on ?Canceling your registration? along with notice 700/1 among other notices within 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 providing the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will need to specify if you follow the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will often reply within a period of 3 weeks. In case you don't get a reply then you should remind them. If hmrc is satisfied with the application then you will 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 now 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 make an application for cancellation of the vat certificate then you will need to follow proper procedure as laid down by hmrc vat department. If your entire papers have been in order and when there aren't any mistakes in the deregistration form then you ought to be out of the vat system within a month of filing vat deregistration.