The tax office may refuse to register a taxpayer for VAT purposes

Taxpayers can deduct VAT upon the tax obligation's emergence and invoice receipt, provided they are active VAT taxpayers. According to Article 96(1) of the VAT Act, entities conducting independent business must submit a registration application to the tax office before their first taxable activity. Article 5 outlines that VAT applies to various transactions, including the sale of goods and services within the country, intra-community supplies, and imports and exports.