Prior to January 2017, suppliers whose VAT numbers were cancelled (due to various reasons provided in the VAT legislation) had the obligation to collect and pay VAT on all their supplies of goods and services. However, these suppliers were not permitted to deduct any VAT. The recipients of goods/services purchased from suppliers with cancelled VAT registrations were unable to deduct VAT on such purchases, even after their suppliers reactivated their VAT numbers.
From 1 January 2017, where a supplier has recovered their VAT registration number, they should issue invoices and charge VAT for all supplies of goods and services provided/performed during the period when their VAT number was cancelled. Beneficiaries of these supplies can recover VAT on the supplies of goods/services.