If you’re a vat registered trader in the United Kingdom that wants to surrender your vat certificate for a variety of reasons then you need to know everything about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you still have to account for vat and file your final vat return.
There are several reasons that may compel one to leave the vat system. You can apply for deregistration of vat in case your business has collapsed and you’ve filed for insolvency, your taxable sales have dropped dramatically and 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 the business, you either join another vat group or disband your present vat group, or you intend to join the agricultural flat rate vat scheme. There are several 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 if 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 vatverification. However, out of all above circumstances you will need to provide required proof in addition to convince hmrc vat as to the genuineness of the reason as to why you wish to cancel your vat registration. Once you’re deregistered from vat then you will not be allowed to issue vat invoices or file vat returns.
For you to definitely deregister yourself from VAT you will need to contact your vat agent that should guide you on the exact process that must be followed in order that you don’t end up making errors. You will have to fill up 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 require your vat registration number, business name and address, and may require you to tick the right reason as to why you have 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 have to specify if you stick to the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will often reply in a time period of 3 weeks. In case you don’t get a reply then you should remind them. If hmrc is satisfied with your application then you will receive 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 bad debts after deregistration.
If certain circumstances compel you to make an application for cancellation of your vat certificate then you will need to follow proper procedure as laid down by hmrc vat department visit this link. If all your papers are in order and when there are no mistakes in your deregistration form then you ought to be out of the vat system in a month of filing vat deregistration.