s it necessary to issue an invoice when removing assets that are fully depreciated and no longer in use?
Yes, an invoice must be issued to remove fixed assets that have completed their depreciation period and are no longer in use from the company’s records. If these assets are sold as scrap, some scrap products may benefit from VAT exemption. The VAT exemption for scrap sales can be found in the VAT General Communiqué, and the invoice should be issued with or without VAT depending on the specifics of the scrap sale.
The text also details VAT withholding rates and the types of materials considered as scrap, such as metals, plastics, and paper. If the items can still be used after repair, VAT withholding does not apply. The process for selling scrapped materials and the applicable VAT exemption or withholding rates are described in detail, including specific cases like vehicle and ship scrapping.
Source:Value Added Tax General Application Communiqué
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