When May a Taxable Person Request Cancellation of VAT Registration?
A taxable person may submit a request to the competent unit to cancel their registration in the following cases:
First: Mandatory Registration
- When turnover decreases below the threshold set by law for taxpayers required to register for VAT.
- When the taxpayer ceases to carry out activities subject to VAT.
Important note: In case of final cessation of business, form “Q6” submitted to the Income Tax Department is sufficient.
Second: Optional Registration
A taxable person registered voluntarily may submit a request to cancel VAT registration as long as their turnover remains below the minimum registration threshold.
Reference:
- Decree No. 7549 relating to the obligations of the taxable person with respect to registration and cancellation of registration.
- Decision No. 453/1 dated 22/4/2009 determining the scope of application of Law No. 44, Tax Procedures Law.
Deadline for Submitting the Registration Cancellation Request
First: Mandatory Registration
| Reason for Submitting the Cancellation Request | Deadline |
|---|---|
| When turnover decreases | Two months from the end of the calendar year following the year during which the turnover decreased. |
| When ceasing to carry out activities subject to VAT | Two months from the end of the calendar year following the year during which the cessation of taxable activity occurred. |
Second: Optional Registration
A taxable person registered voluntarily may submit a request to cancel VAT registration as long as their turnover remains below the minimum registration threshold.
Reference: Decree No. 7549 dated 27/3/2002 relating to the obligations of the taxable person with respect to registration and cancellation of registration.
Special Form
Form Q2-1 must be completed.
Documents to Be Attached to the Registration Cancellation Request
In case of decrease in turnover:
- Registration cancellation request, form Q2-1.
- Turnover details for the previous four years, broken down by quarter.
- Quarterly trial balances for the previous four years.
- Income tax declarations for the previous four years.
In case the taxable person ceases to carry out taxable transactions:
- Registration cancellation request, form Q2-1.
- An official document by which the taxable person proves cessation of the taxable economic activity.
In case of final cessation of business, form “Q6” submitted to the Income Tax Department is sufficient.
When Does Approval of the Registration Cancellation Request Take Effect?
Approval of the registration cancellation request takes effect as of the first periodic quarter in which the cancellation becomes effective for the taxable person.
Reference: Decree No. 7549 dated 27/3/2002 relating to the obligations of the taxable person with respect to registration and cancellation of registration.
Processing Time by the Tax Administration
Deadline: 30 days from the date of submitting the request.
Important Note on Registration Cancellation
Registration remains valid even if the taxable person submits a cancellation request. Accordingly, the taxable person continues to calculate the tax, declare it, and pay it to the Treasury until they are notified of the administration’s approval of the request. The approval indicates the effective date of the cancellation, meaning the date from which the tax is no longer applied and the right of deduction is no longer exercised.
Reference: Decree No. 7549 dated 27/3/2002 relating to the obligations of the taxable person with respect to registration and cancellation of registration.