A VAT payer decided to move to the simplified taxation system. When should the VAT payer inform controlling authorities about the removal from registration?
According to sub-para. “в” of para.184.1 of the Tax Code of Ukraine of 02.12.2010, № 2755-VI (hereinafter - TCU) the registration of value added tax payer (hereinafter − VAT) is valid until the date of cancellation, which is carried out by exclusion from the register of taxpayers and is carried out, in particular, if any entity is registered as a VAT payer, to be registered as a payer of the unified tax (hereinafter − unified tax payer), a payment condition of which does not provide for VAT payment. The same norm is set in sub-para. “в” of para. 5.1 of sec. V of the Regulation on registration of payers of value added tax, approved by the order of the Ministry of Finance of Ukraine of 14.11.2014, № 1130 (hereinafter − Regulation № 1130).
Sub-paragraph 298.1.4 of TCU determines that the business entity that is a payer of other taxes and duties according to norms of TCU, is entitled to make a decision on moving to the simplified taxation system by submitting an application to the controlling authority not later than 15 calendar days before the start of the next calendar quarter.
Subject to compliance with the requirements by the unified tax payer, established by TCU for chosen group by the payer, he/she can independently move to payment of unified tax established for other groups of the unified tax payers, by submitting an application to the controlling authority not later than 15 calendar days before the start of the next quarter. At that, the unified tax payer of the third group, which is a VAT payer, has cancellation of VAT registration in order established by TCU, if he/she chose the first or the second group or a single tax rate established for the third group, which includes VAT in the unified tax (sub-para.298.1 .5 of TCU).
According to para.5.3 of sec. V of the Regulation № 1130, the cancellation of registration on the initiative of VAT payer can be carried out on the grounds defined in sub-para. “а”− “з” of para. 184.1 of TCU.
In order to cancel the registration, the VAT payer should submit an application for cancellation of registration form № 3-VAT to the controlling authority at the place of registration (Annex 3 to the Regulation № 1130). VAT payers, which concluded contracts on the recognition of electronic documents with the relevant controlling authorities, are entitled to submit such an application by means of electronic communications in soft form in compliance with the conditions of registration of an electronic signature of regulated persons in the manner prescribed by law.
If in the Application for cancellation of registration the required requisites are not specified, or provided inaccurate or incomplete information, it is not sealed by the applicant (if any), not signed by the applicant (for individuals), regulated person of the applicant (for legal entities) or a person who has a documentarily confirmed authority for a signature of such application from a person who made a decision on cancellation of registration by VAT payer, then within ten days from the date of receipt of the application, controlling authority should apply to the person with a written offer to provide a new application for cancellation of registration (indicating grounds for rejection of the previous one).
The decision on cancellation of registration at the request of the VAT payer should be adopted by the controlling authority within 10 calendar days. Information on consideration of the application and cancellation of registration of VAT payer should be entered in the Journal of cancellation of registration of payers of value added tax under the form № 3-РЖ (Annex 4 to the Regulation № 1130).
According to para.5.4 of sec. V of the Regulation № 1130, if based on the application of a business entity that is registered as a VAT payer, the controlling authorities have decided that a person from a particular reporting period move to the simplified taxation system, accounting and reporting using the unified tax rates, which does not provide for VAT payment, after the relevant entry in the register of unified tax payers should be made an exception by controlling authority of such entity from the register on the basis of submitted application for the cancellation of registration in accordance with sub-para. “в” of para. 184.1 of TCU on the last day of the reporting period preceding the moving of the taxpayer to chosen by him/her conditions of payment of the unified tax under the simplified system of taxation, accounting and reporting.
