Adjustment of uncollected receivables from individuals

Among the amendments brought to the Fiscal Code by Law no. 296/2020, there is also the completion of article no. 287 with a letter (f). Thus, it is allowed to reduce the tax base from the perspective of adjusting the value-added tax if the total or partial value of the goods delivered or services provided was not collected from the beneficiaries  -individuals–  within 12 months from the payment deadline set by parties, or in its absence, from the date of issue of the invoice, unless the supplier/provider and the beneficiary are affiliated parties within the meaning defined by the provisions of the Fiscal Code. The adjustment shall be made within 5 years from 1 January of the year following that in which the payment period established by the parties occurred, or in its absence, of the year following that in which the invoice was issued, and shall be permitted only in the case of in which it is proved that commercial measures have been taken for the recovery of claims up to 1.000 lei, inclusive, respectively that legal proceedings have been undertaken for the recovery of claims higher than 1.000 lei.

The adjustment is allowed even if the reservation of subsequent verification has been lifted, according to the Fiscal Procedure Code. The adjustment reopens the subsequent verification reserve for the tax period in which the value-added tax became chargeable for the operation subject to the adjustment. If following the adjustment of the tax base, amounts related to those claims are collected, the adjustment made, corresponding to the amounts collected, shall be canceled. The adjustment made is canceled, in the case of claims higher than 1.000 lei, if the supplier/provider waives the legal proceedings undertaken until a final decision is issued.