Allow taxpayers who moved to the general taxation system without VAT registration to use their VAT debit amounts

According to the current provisions of the Tax Code, taxpayers who have moved from the alternative taxation system (turnover tax, micro-entrepreneurship) to the general taxation system, but have not submitted an application to be registered as VAT payers, are not entitled to use their VAT debit amounts. Although, by law, they become VAT payers, these taxpayers incur a VAT liability, yet they are unable to utilize the VAT amounts included in their acquisitions.

It is proposed to allow, in the mentioned cases, the use of VAT debit amounts (i.e., the VAT included in the price of the goods, work, or services being acquired).