Running a business does not always end with spectacular successes, which lead to changes and development of the company and generating more and more income. Sometimes the company turns out to be a bad idea and after a period of trying and trying, you just have to shut it down. It involves a lot of various formalities and obligations. Among them, there is also the settlement of fixed assets.
When deciding to liquidate a company, you should remember that you should take care of a few formal issues. First of all, you need to submit an appropriate deregistration application. This can be done through the website. However, you should remember to visit the office and sign it in person. This is essential to complete the entire procedure. Active VAT payers must also deregister from the group of VAT payers. This should be done on a special form and submitted to the tax office competent for the place of business.
It is also necessary to prepare a liquidation inventory, which will allow for the settlement of fixed assets accumulated in the enterprise. The inventory should present the balance as of the date of the company’s liquidation.
In accordance with the relevant tax regulations, any entrepreneur who liquidates his business must prepare an inventory of the assets of the closed enterprise. The property inventory should include all unsold goods, equipment, and fixed assets.
The list should be orderly and unambiguous so that there is no doubt as to what is included in it. Therefore, it is necessary to enter the items, and each of them should be assigned an appropriate sequential number. Each element must be mentioned by name. The date of its purchase must be given, as well as the amount that was allocated to its purchase, as well as the one that was entered into the costs of running a business, and is related to the described purchase. Next, there must be the initial value, the adopted depreciation method and the sum of the depreciation charges.
It is worth remembering at this point that when conducting a liquidation inventory, the list should include all fixed assets: those partially depreciated and those that have already been fully depreciated.
Some fixed assets may be subject to input tax adjustment on their acquisition. How should these company assets be accounted for? Basically, all ingredients must be included in the liquidation list. And those that are properly accounted for and those that are in the correction period. For the sake of classification, it is assumed that they are used for taxable activities until the end of the adjustment period. After this time, one collective VAT correction should be made, which will apply to the entire remaining period. It is primarily about those assets for which the legislator has provided for a five- and ten-year correction period.
Some fixed assets, for example those that are post-adjustment, may raise questions about their inclusion in the decommissioning inventory. It is invariably the subject of numerous disputes, and the issue has still not been unequivocally resolved, although the topic has already been discussed many times.
In such a situation, when there is a doubt about the settlement or placement of the fixed asset in the liquidation inventory, it is best to go to the tax office competent for the place of business and ask for an official’s opinion. Its interpretation of the provisions may be binding for the entrepreneur and as such he may apply. It is a great help. It is a clear hint and hint. It is always worth contacting the tax office with a tax-related inquiry. This will help you to do the correct billing and avoid unnecessary trouble.