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


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If you’re a vat registered trader in the United Kingdom that desires to surrender your vat certificate for a number of reasons then you need to know everything about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is pretty simple, you still need to take into account vat and file a final vat return.

There are several reasons that may 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 and you expect them to drop below the vat threshold limit of ?70,000 in the next 12 months, you sell your business, 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 else you intend 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 could allow you to be a valid candidate for vat deregistration.

You can also voluntarily step out of the vat tax system in case your taxable supplies are mainly 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 in addition to convince hmrc vat regarding the genuineness of the reason as to the reasons you want 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.

In order for you to deregister yourself from vatvalidation.com you will have to contact your vat agent that should direct you about the exact process that must be followed so that you don’t find yourself making errors. You will need 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 in 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 in addition to 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. Additionally, you will have to specify in the event you follow the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will usually reply in a time period of 3 weeks. In the event you don’t get a reply then you should remind them. If hmrc is content with the application then you’ll get 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 now be able to direct you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

If certain situations compel you to make an application for cancellation of your vat certificate then you’ll need to follow proper procedure as laid down by hmrc vat department. If all your papers have been in order and if there are no mistakes in the deregistration form then you ought to be out from the vat system in a month of filing for vat deregistration.