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. Although the procedure for canceling vat registration is quite simple, you will still need to take into account vat and file your final vat return.
There are several reasons that may compel you to come out of the vat system. You can apply 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 in the next 12 months, you sell your organization, there’s a change in the legal status of your business, you 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 that are specified by HM Revenue and Customs or hmrc vat department that can make you a legitimate candidate for vat deregistration.
You can also voluntarily step out of the vat tax system in case 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 vatverification.com. However, in all the 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 want to cancel your vat registration. Once you are deregistered from vat then you’ll not be allowed to issue vat invoices or file vat returns.
In order for you to deregister yourself from VAT you will have to get hold of your vat agent that should guide you about the exact process to be followed in order that you do not find yourself 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? along with notice 700/1 among other notices in this range. This form will require your vat registration number, business name and address, and may require you to tick the appropriate reason as to why you have requested deregistration in addition to providing the required anticipated sales figures. You will also have to mention the gross value including vat of stocks and assets that you currently hold. Additionally, you will have 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 time period of 3 weeks. In case you do not receive a reply then you should remind them. If hmrc is content with the 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 have the ability to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.
If certain circumstances 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 discover more. If all your papers are in order and if there are no mistakes in the deregistration form you then ought to be out from the vat system in a month of filing vat deregistration.