Compensation for VAT: Filing Tax Returns Post-Merger and Entity Deregistration

• The statement addresses whether a company taking over another in a merger can claim VAT compensation for invoices issued to the transferring company after the merger is completed.
• The Tax Directorate has been asked about the possibility of submitting a VAT compensation tax return after a compensation entity is deleted from the Entity Register due to a merger.
• A similar issue was considered in a 2019 statement regarding municipal mergers.
• VAT compensation is intended to counteract competitive distortions caused by the VAT system.
• Registration in the Entity Register is a requirement for submitting a VAT compensation tax return.
• The Entity Register collects and provides data about businesses, assigning a unique nine-digit organization number.
• This number is used for technical registration and ongoing reporting through VAT compensation tax returns.
• Submitting a VAT compensation tax return is necessary to receive compensation.
• The Tax Directorate considers registration in the Entity Register as an essential requirement for submitting VAT compensation tax returns.
• The issue arises when a transferring company is deleted from the Entity Register due to a merger.

Source: skattno-zr-chdeevdxejhjbvh8.westeurope-01.azurewebsites.net

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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