If you are a vat registered trader in the United Kingdom that wants to surrender your vat certificate for a variety of reasons then you will want to know all 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 one to leave the vat system. You can apply for deregistration of vat if your business has collapsed and you have declared insolvency, your taxable sales have dropped dramatically therefore you expect them to drop below the vat threshold limit of ?70,000 within the next 12 months, you sell your organization, there is a change in the legal status of your business, you can either join another vat group or disband your present vat group, or you want to join the agricultural flat rate vat scheme. There are several other reasons that are specified by HM Revenue and Customs or hmrc vat department that can make you a legitimate candidate for vat deregistration.
You may also voluntarily leave the vat tax system if your taxable supplies are generally or perhaps wholly zero rated. You can even do so in case your input tax usually exceeds your output tax. However, out of all 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 no longer be permitted to issue vat invoices or file vat returns.
For you to deregister yourself from http://vatvalidation.com you will have to contact your vat agent that will direct you on the exact process to be followed in order that you do not find yourself 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 require you to tick the appropriate reason as to the reasons you have requested deregistration in addition to 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. You will also need to specify in the event you stick to the vat cash accounting system.
After you have filled up the vat deregistration form then hmrc will often reply in a period of 3 weeks. In the event you don’t receive a reply then you should remind them. If hmrc is content with your application then you’ll get 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 have the ability to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts 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 when there are no mistakes in your deregistration form you then ought to be out from the vat system in a month of filing vat deregistration.