As we know, the procedure for cancellation of registration of value added tax (hereinafter – VAT) payer is defined by Art. 184 of the Tax Code of Ukraine (hereinafter – the Tax Code) and regulated by Chapter V of the Regulation on registration of value added tax payer, approved by Order of the Ministry of finance of Ukraine No. 1130 of November 14, 2014, which was registered in the Ministry of Justice of Ukraine on November 17, 2014 under No. 1456/26233 of (hereinafter – Regulation No. 1130). Let’s find out whether the reorganized VAT payer is subject to cancellation.
Registration is valid until the date of cancellation of registration of taxpayer, which is carried out by exclusion from the taxpayers register and in case a person, registered as taxpayer has decided to terminate its activity and approved the liquidation balance, transfer instrument or distribution balance in accordance with the legislation provided that the tax liability is paid in cases defined by Chapter V of the Tax Code (paragraph ‘b’ item 184.1 Art. 184 of the Tax Code).
In accordance with item 5.2 of Regulation No 1130 the cancellation of registration in under paragraph ‘b’ item 184.1 of Art. 184 of the Tax Code may be initiated by a VAT payer – a legal entity after the commission of termination (reorganization commission, liquidation commission) or liquidator of the liquidation balance, transfer instrument or distribution balance in case of reorganization of the VAT payer in accordance with the law by merger, acquisition and division if the date of state registration of the legal entity formed as a result of the transformation is the date of completion of the transformation).
Thus, the registration of VAT payer, reorganized by merger, acquisition, division or transformation (in case the date of state registration of legal entity formed as a result of transformation is the date of completion of transformation) is subject to cancellation. The registration of VAT payer reorganized by demerger is not subject to cancellation.
