Business liquidation - date in the application

Service Business

Business liquidation - definitions

The liquidation of a business activity is sometimes difficult - especially when it comes to what date of closing the company should be entered in the appropriate forms. Business liquidation is not clearly defined in the regulations. In the Act on tax on goods and services one can find an imprecise notion of cessation of activities subject to taxation. The dictionary of the Polish language says that "to stop" means to stop doing something. Therefore, it seems that the cessation of activities subject to VAT taxation can be understood as the final (not temporary) termination of economic activity.

Business liquidation - CEIDG

The cessation of the sale of goods or services on a given day means the end of the performance of activities subject to VAT in the light of art. 14 sec. 5 and art. 96 sec. 6 of the VAT Act. At the same time, the taxpayer must draw up a physical inventory of unsold goods and materials that are eligible for input tax deduction. Due tax must be paid from them or the input tax must be corrected.

The liquidation of a business must be carried out using the CEIDG-1 application with the information on its closure included. The form should include the date of the last day of performing the activity. According to CEIDG, the application should be submitted within 7 days from the date of permanent liquidation of business activity. The closing date of the company cannot be later than the application submission date.