Return of Goods by Successor: What about VAT?

• Operation of returning goods by a legal successor is considered a supply operation for VAT purposes
• According to the law, mergers, acquisitions, divisions, and transformations of legal entities are carried out by the decision of its participants or the authorized body of the legal entity
• State registration of the newly formed legal entity and the termination of the legal entities that cease to exist as a result of the merger are required
• State registration of the termination of the legal entities that cease to exist as a result of the merger and registration of changes in the Unified State Register of Legal Entities, Individual Entrepreneurs, and Public Formations are required in case of joining legal entities
• Goods are returned by the legal successor, who becomes the new taxpayer for VAT purposes, so there are no grounds for adjusting tax obligations for the supplier
• The operation of returning goods by a legal successor is considered a supply operation and is subject to VAT
• The legal successor who returns the goods is obligated to calculate tax liabilities, issue a tax invoice, and register it in the State Tax Service

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.

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