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Know everything 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 variety of reasons then you need to learn everything about the vat deregistration process to cancel your vat number. Even though the procedure for canceling vat registration is pretty simple, you will still have to account for vat and file a final vat return.

There are many reasons that may compel you to come out of the vat system. You can make an application for deregistration of vat in case 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 1 year, you sell your business, there’s a alternation in the legal status of your business, you either join another vat group or disband your present vat group, or 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 if your taxable supplies are generally or even wholly zero rated. You can also do this in case your input tax usually exceeds your output tax. However, out of all 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 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.

For you to definitely deregister yourself from vatregistrationnumber you will need to get hold of your vat agent that should direct you on the exact process that must be followed so that you do not find yourself making errors. You will need to fill 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 within this range. This form will need your vat registration number, business name and address, and may need you to tick the right reason as to why you have applied for deregistration along with providing 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 stick to the vat cash accounting system.

After you have filled up the vat deregistration form then hmrc will usually reply within a time period of 3 weeks. In case you do not get a reply then you should remind them. If hmrc is satisfied with the 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 be able to guide you on matters regarding reclaiming vat after deregistration and claiming relief on debt after deregistration.

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