If you’re a vat registered trader in the UK that desires to surrender your vat certificate for a number of reasons then you need to learn all about the vat deregistration process to cancel your vat number. Although the procedure for canceling vat registration is quite simple, you still have to account for vat and file a final vat return.
There are many reasons that could compel you to leave the vat system. You can make an application for deregistration of vat if 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 within the next 12 months, you sell your business, there is 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 various other reasons which are specified by HM Revenue and Customs or hmrc vat department that can make you a valid candidate for vat deregistration.
You can also voluntarily leave the vat tax system if your taxable supplies are mainly or perhaps wholly zero rated. You can also do this in case your input tax usually exceeds your output tax vat verification. However, out of all above circumstances you will have 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 VAT you will need to get hold of your vat agent that should direct you on the exact process to be followed so that you don’t 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 within this range. This form will require your vat registration number, business name and address, and will need you to tick the right reason as to why you’ve requested deregistration along with offering the required anticipated sales figures. Additionally, you will need to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will have to specify if you follow the vat cash accounting system.
Once you have filled up the vat deregistration form then hmrc will often reply within a period of 3 weeks. In the event 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 and also get a formal notice of exemption from registration on VAT8 form. Your vat agent will now have the ability to direct you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.
If certain situations 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 click here. If your entire papers have been in order and if there are no mistakes in the deregistration form you then ought to be out from the vat system within a month of filing vat deregistration.