- Upon VAT registration cancellation, tax liabilities must be calculated based on the ordinary price of goods, services, and non-current assets.
- A new letter from the tax authorities provides guidance on applying tax code norms when a company cancels VAT registration with remaining assets.
- The company listed assets including real estate, advances, inventory, low-value non-current assets, and intangible assets.
- The tax code requires determining the minimum VAT base using ordinary prices.
- Options for determining ordinary prices include purchase price, residual value, or professional appraiser evaluation.
- Tax authorities clarified that VAT taxation is governed by specific sections of the tax code.
- If assets were not used in taxable operations, tax liabilities must be determined based on ordinary prices unless the cancellation is due to reorganization.
- Ordinary price is defined as the price agreed by contract parties unless otherwise specified by the tax code.
Source: news.dtkt.ua
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
