Many cross-border e-commerce sellers in the UK may operate more than one store, so in addition to carefully managing their main accounts, they will also open small accounts for business operations. However, due to some reasons, sellers sometimes need to close their store and cancel their VAT account. If the seller decides not to use the store to sell goods on the website in the future, he or she needs to cancel the VAT account. Because if the VAT account has not been canceled, the seller still needs to declare in accordance with the regulations. So, let’s learn how to cancel the British VAT by yourself?
1. How to cancel the British VAT by yourself?
If the seller on the UK site has decided to abandon the store and close it, they can contact the tax agent for VAT cancellation. The account cancellation application requires the following information: account cancellation report, store closure certificate, account cancellation confirmation, and other supplementary information during the account cancellation process.
It is worth noting that VAT cannot be withdrawn at any time during the tax audit. If the seller has defaulted on taxes and fines while using the VAT account, the VAT account will not be cancelled. At the same time, once the VAT account is approved by the tax bureau, it will not be canceled during the review period. Even if the seller applies for cancellation, the tax bureau will not suspend the review, but has the right to continue investigation and review. In serious cases, the seller will be listed as having no credit record by the British government.
Whether you need to pay the VAT cancellation fee depends on the specific circumstances of each seller. If the account has been reviewed and needs to be cancelled, the seller can make a final declaration plus a cancellation. Customers who need to cancel quarterly declarations must complete the operation within 4 days before submitting the last declaration documents and cancellation documents and paying cancellation fees. Usually, once the VAT value-added tax account takes effect, a declaration needs to be made every quarter. If the seller plans to make a current value declaration or make a new declaration after the store reopens, the VAT account under review cannot be canceled.
2. What should you pay attention to when canceling your VAT value-added tax account?
1. If the customer does not indicate the date of suspension of sales, you can submit a zero declaration confirmation letter or declaration. The last day of the application period to determine the final sale date.
2. If the sales suspension date falls on a certain day during the declaration period, the seller needs to provide corresponding data, including the last transaction date or the last day of the zero-declaration reporting period, and the sales suspension date.
The above introduction is related to how to cancel VAT in the UK. It is very important to submit a declaration to the tax bureau. This can help companies avoid risks and losses caused by tax issues. It should be noted that, Tax regulations may differ from country to country, and companies need to carefully understand and comply with relevant regulations. For cross-border sellers, if they operate on the Amazon platform for a long time, they still need to respect the EU tax rules, operate legally, and pay taxes compliantly to avoid unnecessary trouble. After all, the cost of registering and canceling a VAT VAT account is not high.