When a company cancels its VAT number, it means that it no longer intends to use or exploit previously acquired investments to make sales subject to VAT, and does so definitively. The direct link between the input purchase and the output sale is broken and the regularization mechanism must be applied. It does not matter why the activity is stopped. What triggers the VAT adjustment is, therefore, the fact that you no longer intend to use the capital goods on a permanent basis.
Source vatdesk.eu
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