Concise Accountancy

Accountants and Registered Auditors

VAT compliance

Cancel VAT

You may Cancel VAT registration with HM Revenue and Customs (HMRC) if you have stop trading or providing vatable goods and services to your customers or your sales falls below the de-registration threshold. You must apply to cancel your VAT within 30 days your business become not eligible to avoid a penalty from HMRC.

VAT stands for Value Added Tax.

De-register for VAT

When working out your taxable sales to determine whether you are eligible to de-register for VAT, the sales amount should exclude VAT. If you are eligible to de-register for VAT, you must submit the Form VAT7 by post to HMRC and giving the reasons for de-registration or do it online.

There are circumstances where your company must cancel your VAT registration. This include:

  1. Where your company no longer selling products or services that subject to VAT.
  2. You have changed the original plan and no longer want to sell VAT-taxable products and services.
  3. Selling your company.
  4. Incorporate your sole trading business to a limited company. In this case, you must apply for VAT for your limited company separately.
  5. No longer belong to a VAT group
  6. You just unite with a VAT group
  7. You are joining the Agricultural Flat Rate Scheme.

If your reason to cancel your VAT is that you are incorporating your sole proprietor business, you must deliver confirmation statement and company accounts to Companies House after incorporation.

Where to Send your VAT7

Send your completed form VAT7 to HMRC office at the following address:

Grimsby National Registration Service
HM Revenue and Customs
Imperial House
77 Victoria Street
DN31 1DB

For VAT registered businesses based outside the UK, the VAT7 form should be sent to:

Non-Established Taxable Persons Unit (NETPU)
HM Revenue and Customs
Ruby House
AB10 1ZP

HMRC accepts your de-registration application, they will send you a confirmation of de-registration and the final VAT return (Form VAT193) to complete.

In circumstances where the period covered in the VAT193 will duplicate a previously submitted VAT return (VAT100), you must exclude any VAT on this return that has already been declared on a previous return.

You must complete the final VAT return form even if you have nothing to declare; in this case, you just send HMRC a nil return.

The final VAT return (VAT193) should be returned to:

VAT Controller
VAT Central Unit

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