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Practical Handbook VAT 2021

Commencement or cessation of application of the special system

Adjustments to be made in the event of commencement and cessation of operations under the special scheme:

  1. When an activity changes from the general scheme to the special scheme, the operator is obliged to:

    • Enter the amount of the compensation corresponding to the future delivery of the natural products already obtained and not delivered at the date of the change of regime.

    • Rectify the deductions corresponding to goods, except for investment goods, and services not consumed or used in full or in part, effectively in the activity or operation.

  2. When an activity changes from the special scheme to the general scheme, the operator is entitled to:

    • Deduct the tax liability resulting from applying to the value of the goods used in the activity, VAT excluded, on the date on which the scheme ceases to apply, the rates in force on that date, without taking into account investment goods or goods and services that have been used or consumed, in whole or in part, in the activity.

    • Deduct the flat-rate compensation for natural products obtained on holdings which were not delivered on the date of the change of regime.

In both cases, you are obliged to to draw up and submit an inventory which must include the natural products obtained and not delivered (for compensation) and the goods and services acquired and not consumed or used in full or in part (for quotas).

The presentation of the inventory and the exercise of these rights shall be subject to the requirements and conditions established by regulation.Specifically, must be submitted within fifteen days from the date on which the special regime begins or ceases to apply, and may be submitted electronically through the procedure set up at the E-Office for the submission of the inventory of stocks due to the commencement or cessation of activity subject to special Value Added Tax (VAT) regimes.

For the purpose of adjusting deductions of input tax paid on the acquisition or importation of capital goods, the deductible proportion applicable during the period(s) in which the activity is covered by this special scheme shall be zero.