Unsold inventory destruction

Distrugere-stoc-nevandut

Unsold inventory refers to products that have not been purchased by consumers and remain in a company’s stock. This inventory can accumulate for various reasons, such as inaccurate demand forecasting, a decline in product popularity, high pricing, or strong competition.

There are several reasons why unsold inventory might be destroyed:

  • Space and cost issues: Maintaining unsold stock occupies valuable warehouse space and can incur additional costs, such as storage fees. In some cases, destroying the inventory may be more cost-effective than keeping it long-term.
  • Product lifespan: Perishable goods or products that quickly become technologically obsolete may no longer be sellable after a certain period and must often be destroyed to make room for new inventory.
  • Brand protection: Some brands or companies seeking to maintain the exclusivity and value of their products opt to destroy unsold inventory to prevent devaluation and to avoid their products entering secondary markets at reduced prices.
  • Regulatory and safety standards: If products fail to meet safety standards or have been recalled due to defects, their destruction is often necessary to prevent health or public safety risks.
  • Tax avoidance: In some cases, the costs associated with customs duties for exporting unsold inventory can make destruction a more feasible option.

Removal of non-salable inventory from accounting records

Expenses incurred for removing degraded goods from accounting records are tax-deductible when calculating corporate income tax.

VAT adjustment for non-salable inventory

According to current legislation, services paid to a recycling company for the destruction of goods are fiscally deductible.

Integrated waste management

We offer comprehensive and specialized solutions for the collection, disposal, and destruction of expired, damaged, counterfeit, confiscated, non-compliant, or specially regulated products.

Collection of electrical and electronic equipment

We provide integrated solutions for the efficient management of household and electronic waste, ensuring specific treatment for each category.

Discover the financial benefits of managing non-salable inventory