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Practical Handbook VAT 2022

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 a activity changes from the general regime to the special regime, the holder of the holding is obliged to:

    • Enter the amount of 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 a activity changes from the special scheme to the general scheme, the holder of the holding shall be entitled to:

    • Deduct from the tax liability resulting from applying the rates in force on that date to the value of the goods used in the activity, VAT excluded, on the date on which the scheme ceases to apply, 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 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, the submission must be made within fifteen days from the date of commencement or cessation of application of the special scheme, and may be submitted electronically via through the procedure set up in the electronic Headquarters for the submission of the inventory of stocks due to commencement or cessation of activity subject to special Value Added Tax (VAT) schemes.

For the regularisation of the deductions of the quotas borne in the acquisition or importation of capital goods, the deductible proportion applicable during the period or periods in which the activity is covered by this special regime shall be zero.