VAT Deregistration: What Happens to the Cash Method for Tax Obligations?

• Upon VAT registration cancellation, the taxpayer loses the right to use the cash method for determining tax liability dates.
• The taxpayer must determine tax liabilities for goods/services/non-current assets included in the tax credit but not used in taxable operations by the last reporting period, no later than the cancellation date.
• Tax liabilities are calculated based on the usual price of such goods/services/assets, except in cases of reorganization (merger, transformation, division, etc.).
• The cash method, which ties tax liability dates to the receipt or payment of funds, no longer applies after VAT registration is canceled.
• The taxpayer must accrue tax liabilities for delivered but unpaid goods/services by the VAT deregistration date.

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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