Accumulation of VAT on goods when closing a company

Accumulation of VAT on goods when closing a company

Question:
Hello!
We had a grocery store and we closed it due to lack of work. How is VAT calculated for the rest of the goods?
They tell us some huge sums, and we don't have a product for that money.
Thanks in advance!

Answer:
Hello,
Let's understand that the company was registered for VAT and now you want to deregister it. In this case, the law requires you to charge 20% VAT on the value of the available goods (purchase value) for which you used a tax credit (ie for which you deducted and/or refunded VAT) - Art. 111 of the VAT Law.
We will give an example: If you have available goods which, at the prices at which you purchased them, are BGN 10,000. If you used VAT for all of these goods (or deducted it from the VAT you owed or refunded it), then you will have to charge 20% VAT on this BGN 10,000 and pay it into the state budget.
Here we make the following clarification - the value of available goods is considered the value according to accounting documents, and not the actual available goods. Naturally, with correct work on the part of both your accountant and you, the two things would be equal, but our practice shows that this is rarely the case.
We hope we have been helpful!
Greetings!