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Know all about the vat deregistration process to cancel your vat number


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If you are a vat registered trader in the UK that desires to surrender your vat certificate for a variety of reasons then you need to learn everything about the vat deregistration process to cancel your vat number. Even though the process of canceling vat registration is quite simple, you will still need to account for vat and file a final vat return.

There are many reasons that could 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 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’s a alternation in the legal status of your business, you can 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 allow you to be a valid candidate for vat deregistration.

You may also voluntarily leave the vat tax system in case your taxable supplies are generally or perhaps wholly zero rated. You can also do so in case your input tax usually exceeds your output tax. 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 no longer be allowed to issue vat invoices or file vat returns.

For you to definitely deregister yourself from vatcontrol you will need to get hold of your vat agent that will guide you on the exact process to be followed so 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? 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 why you have requested deregistration along with offering the required anticipated sales figures. Additionally, you will have to mention the gross value including vat of stocks and assets which you currently hold. You will also have to specify if you follow the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will usually reply within a period of 3 weeks. In case you don’t get a reply then you definitely should remind them. If hmrc is content with the application then you will get 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 be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on bad debts after deregistration.

If certain situations compel you to apply for cancellation of the vat certificate then you’ll need to follow proper procedure as laid down by hmrc vat department. If all your papers are in order and if there aren’t any mistakes in the deregistration form then you should be out from the vat system within a month of filing vat deregistration.