Termination of Contract Due to Force Majeure Does Not Entitle to Reduced VAT Without Refund of Advance Payment

June 11, 2026 · WOWERI

If the advance payment is not refunded, the supplier is not entitled to a reduced VAT. Termination of a contract due to force majeure does not justify a reduction in VAT.

Introduction

The termination of a contract due to force majeure does not entitle the supplier to a reduced VAT without a refund of the advance payment. This means that if the advance payment is not refunded, the supplier is not entitled to a reduced VAT.

Implications for Suppliers and Buyers

Suppliers should be aware that the termination of a contract due to force majeure is not a basis for reducing VAT. Buyers should also be aware of their obligations to refund the advance payment.

Conclusion

In conclusion, suppliers and buyers should be aware of the implications of terminating a contract due to force majeure. If the advance payment is not refunded, the supplier is not entitled to a reduced VAT.

Source: biz.ligazakon.net