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Removal a VAT taxpayer from the VAT Register

 The Tax Law allows the head of the tax office to remove an active VAT taxpayer from the VAT register according the Act of March 11, 2004 on tax on goods and services. Until 2017, the head of the tax office had the right to remove a taxpayer from the VAT register only in a few cases:

  • taxpayer does not exist,
  • if it is not possible to contact the taxpayer or his legal agent,
  • for providing false data in the data registration form,
  • if the taxpayer or his legal agent fail to appear before the tax authorities when ordered to do so,
  • on the basis of the information about the taxpayer, he can carry out activities related to tax fraud,
  • the court ruled a ban on the conduct of business by the taxpayer.

In the event of one of the situations, the tax office may remove a taxpayer from the register of active VAT taxpayers without informing it.

The Tax Office also deletes from the VAT register in the following situations:

  • suspended business activities for a period of at least 6 consecutive months,
  • failure to file for 3 consecutive months or for 1 quarter for VAT tax returns,
  • failure to file zero VAT returns for a period of 6 consecutive months or 2 consecutive quarters,
  • for issuing fictitious invoices not relating to real transactions,
  • taxpayer assumed that suppliers and purchasers in the supply of goods or services do not account for taxes.

At the same time, entrepreneurs have a chance to avoid removed from the register of VAT taxpayers or reinstated in this register, after appropriate documentation. If the taxpayer has suspended business activity for a period of more than 6 consecutive months and carries out taxable activities, but  informs the head of the office about it, will not be deleted or, if it happened, will be reinstated as a VAT taxpayer for the period specified in the notification.

If the taxpayer did not submit a declaration for 3 consecutive months or 1 quarter, and will be able to prove that he was engaged in business during this period and fill in the missing declarations. The taxpayer will restore him as an active VAT.

The similar situation is for taxpayers who for a period of 6 consecutive months or 2 quarters submit zero tax returns (no sales, purchases). Where it proves that this is due to the specific nature of the business (e.g. seasonal activities), the office shall not remove them from the register.

The removal from the VAT register shall be effected without an administrative decision by the tax office. This means that the taxpayer cannot appeal against the decision and only has to re-register.

In order not to be removed from the VAT register:

  • submit VAT returns on time
  • provide a valid telephone number for contact purposes
  • update company address details.

It is important to check the VAT status of the supplier. The supplier's exclusion from VAT may be disadvantageous for the buyer, who does not to deduct VAT from the purchase invoice. It is worth checking the supplier before buying. For this purpose, the White List of taxpayers made available by the Ministry of finance contains the data of all taxpayers, including their current VAT status.