The head office of the DPS in Kyiv informs that according to para. “b” clause 184.1 of Art. 184 of the Tax Code of Ukraine, the registration of a taxpayer is valid until the date of cancellation of his registration, which is carried out by exclusion from the register of taxpayers and occurs in the event that a person registered as a taxpayer has made a decision to terminate and approved a liquidation balance sheet, a transfer deed or a distribution balance sheet in accordance with legislation, subject to the payment of the amount of tax liabilities from the tax in the cases specified by the PKU.
If the goods/services, non-current assets, the tax amounts for which were included in the tax credit, were not used in taxable transactions within the scope of economic activity, such a taxpayer in the last reporting (tax) period no later than the date of cancellation of his registration as a taxpayer shall is required to determine the tax liability for such goods/services, non-current assets based on the normal price of the corresponding goods/services or non-current assets, except in cases of cancellation of registration as a tax payer as a result of reorganization of the tax payer through merger, merger, transformation, division and separation in accordance with of the law (clause 184.7 of article 184 of the Civil Code).
In accordance with Clause 196.1.7 of Art. 196 of the PKU, operations on reorganization (merger, merger, division, separation and transformation) of legal entities are not subject to taxation.
According to paragraphs “a” clause 198.5 of Art. 198 of the Civil Code, the taxpayer is obliged, in particular, to calculate tax liabilities based on the tax base determined in accordance with Article 189.1. 189 of the Civil Code, for goods/services, non-current assets, during the acquisition or production of which tax amounts were included in the tax credit, in the event that such goods/services, non-current assets begin to be used in operations that are not subject to taxation (except cases of operations provided for in Clause 196.1.7 of Clause 196.1 of Article 196 of the Code of Civil Procedure).
Therefore, a VAT payer that is reorganized by way of merger, merger, transformation, division and allocation in accordance with the law does not charge tax liabilities on goods/services, non-current assets, tax amounts on which were included in the tax credit, and which were not used in taxable transactions within the economic activity of such a taxpayer, nor a reduction in the tax credit for transactions related to their acquisition.
Source: kyiv.tax.gov.ua
