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  • February 8, 2024
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After mandatory VAT registration, it will be possible to cancel the registration as soon as such right arises

 According to the amendment in Order 996 of the Minister of Finance, in the case of mandatory registration of VAT taxpayers during the tax inspection, in the event of the right to cancel the VAT registration during the same inspection period, the cancellation of the VAT registration will be possible at the time of the occurrence of such right in case of the corresponding consent of the taxpayer.

As it is known, according to the current law, the obligation to register as a VAT payer arises, among other things. Then, if during 12 continuous calendar months, VAT taxable turnover exceeds 100 GEL. According to the old approach of the Revenue Service, if the turnover exceeded 000 GEL during the tax inspection, the taxpayer was registered as a VAT payer in a mandatory manner, and during the same inspection, the VAT registration was not cancelled, even if the turnover fell below 100 GEL during any 000 months after such registration. to be fixed.

As a result of the amendment in Article 996 of Order No. 47 of the Minister of Finance, it was directly written in the order that if during the tax audit, the taxpayer is required to register as a VAT payer (the turnover exceeded 100 GEL) and subsequently VAT registration Right to cancel (turnovers below 100 GEL), the person authorized to carry out tax audits is entitled to apply to the person, with the initiative of canceling the registration as a VAT payer, after which, if the taxpayer agrees, the VAT registration will be considered cancelled.

 This means that if, according to the old law, during the inspection of the period from January 2021 to November 2024, for example, in the month of May 2022, the mandatory registration obligation would occur (the turnover exceeded 100 GEL), the Revenue Service would compulsorily register the payer as a VAT payer for the month of May 000. from the date and would not cancel the registration as a VAT payer Even by the end of the tax audit period (November 2024), for example, during the last 2023 calendar months ending in May 12, the sum of VAT taxable transactions was below 100 GEL.

According to the legislative change, based on the example mentioned above, the mandatory registration of the taxpayer will be done in the month of May 2022, and before the end of the payment inspection period, i.e. until November 2024, in any month, for example, in the month of March 2024, it will be fixed for 12 GEL of VAT taxable transactions during the last 100 calendar months. Less turnovers - the revenue service is authorized to apply to a person, with the initiative of canceling the registration as a VAT payer, and in case of the consent of the taxpayer, the cancellation of the registration as a VAT payer will take place before the end of the tax audit period, i.e. from March 000, Which means that if there is a delay in registration, but the subsequent turnover in the 12-month period falls below 100 GEL, the Revenue Service will be authorized to remove the taxpayer from VAT registration, which will enable such taxpayers to receive a much lower VAT amount despite the delay in VAT registration. Fines and fines should be paid.

 The said change will come into effect from February 2024, accordingly, after the mentioned period, those taxpayers who are late in registering as VAT payers will be able to take advantage of the mentioned benefit and during the inspection period, request the auditors of the Audit Department of the Revenue Service to cancel the registration as a VAT payer, or turnovers within any 12 months before the end of the inspection period 100 000 will be less than GEL.


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