Cancellation of the VAT registration occurs in cases where enterprise or individual-entrepreneur no longer meets requirements for being in the VAT register, ceases transactions or switches to the simplified taxation system.
Cancellation procedure is determined by Article 184 of the Tax Code of Ukraine and Regulation on Registration of the VAT payers, approved by Order of the Ministry of Finance of Ukraine № 1130.
When can registration be canceled?
VAT registration of the taxpayer is subject to cancellation if:
- Total value of taxable products/services for the last 12 months is less than 1 million UAH and the payer submits application for cancellation.
- Enterprise or individual-entrepreneur ceases transactions and approves liquidation or distribution balance sheet.
- Taxpayer switches to the simplified taxation system that does not require the VAT payment.
- No VAT declarations are submitted within 12 months and/or declarations are submitted without transactions.
- There is a court decision on the invalidity of constituent documents, liquidation or deprivation of the business entity’s status.
- Payer-individual died, been declared incompetent or is missing.
- Contract on the basis of which person was registered as the VAT payer expired.
In cases of activity termination or transition to the single tax without the VAT, cancellation is carried out automatically.
Submission of application
To cancel registration, the payer submits application using form № 3-VAT to the controlling authority at the registration place. Document can also be submitted electronically.
Application consideration results
Within 10 calendar days after receiving application, the controlling authority:
- cancels registration if there are certain grounds;
- suggests to submit new application if there are errors or missing data in the document;
- refuses if there are no legal grounds or the payer is required to be registered.
If application is not submitted
If there are grounds for cancellation, the controlling authority compiled document in the form № 6-RVAT, one copy of which is sent to the payer, and cancels the VAT payer’s registration. Information about cancellation appears in the Electronic cabinet.
Cancellation date
Registration cancellation takes place from the date of:
- submission of application or adopting decision of the controlling authority;
- specified in the court decision;
- termination of the contract or liquidation;
- state registration of termination of legal entity or individual-entrepreneur;
- transition to the single tax without the VAT.
What changes after cancellation?
Person whose registration has been cancelled:
- loses right to attribute the VAT amounts to the tax credit,
- cannot issue tax invoices.
More information about canceling the VAT registration can be found at the link: https://tax.gov.ua/baneryi/onlayn-navchannya/reestratsiya-ta-oblik-yuridichnih-osib-ta-samozaynyatih-fizichnih-osib/reestratsiya-platnikiv-pdv/957285.html.
