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 know all about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is pretty simple, you will still have to take into account vat and file a final vat return.
There are many reasons that may compel you to leave the vat system. It is possible to make an application for deregistration of vat in case your business has collapsed and you have 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 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 several other reasons which are specified by HM Revenue and Customs or hmrc vat department that could allow you to be a legitimate candidate for vat deregistration.
You may also voluntarily step out of the vat tax system if your taxable supplies are generally or even wholly zero rated. You can also do so if your input tax usually exceeds your output tax. 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 will no longer be permitted to issue vat invoices or file vat returns.
For you to definitely deregister yourself from vatnumbers 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 don’t end up making errors. You will have 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 within this range. This form will need your vat registration number, business name and address, and will need you to tick the right reason as to the reasons you have applied for deregistration along with offering the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets that you currently hold. You will also need to specify if you follow the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will usually reply within 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’ll receive a formal notice of vat cancellation on VAT35 form as well as receive 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 apply for cancellation of the vat certificate then you’ll have to follow proper procedure as laid down by hmrc vat department. If your entire papers have been in order and if there are no mistakes in your deregistration form you then should be out of the vat system in a month of filing vat deregistration.