Recovery of micro-tax for the correction of invoices issued in previous quarters
For micro income tax-paying companies, in the situation of partial cancellation of the invoices from previous months, we often ask ourselves the question of whether the income tax paid can be recovered in the previous and next quarter of this year and how can we recover the tax paid in addition?
According to Law 227 / 2015 regarding the Fiscal Code, the taxable base of the tax on the income of micro-enterprises is provided in art. 53 paragraph (1).
(1) The taxable base of the tax on the income of micro-enterprises is the income from any source, from which there are deducted:
a) income related to the costs of product stocks;
b) income related to the costs of services in progress;
c) income from the production of tangible and intangible assets;
d) subsidy income;
e) income from provisions, adjustments for impairment or for loss of value, which were non-deductible expenses when calculating taxable profit or were constituted during the period when the Romanian legal entity was subject to the tax on the income of micro-enterprises;
e1) the income from adjustments for expected losses related to the financial assets constituted by the Romanian legal entities that carry out activities in the banking field, in the fields of insurance and reinsurance, of the capital market, which were non-deductible expenses when calculating the taxable profit or were constituted during the period in which the person Romanian legal entity was subject to tax on the income of micro-enterprises.
f) income resulting from the return or cancellation of interest and / or late penalties, which were non-deductible expenses when calculating taxable profit;
g) the incomes obtained from damages, from the insurance/reinsurance companies, for the damages caused to the goods of the nature of stocks or of own tangible assets;
h) income from exchange rate differences;
i) the financial income related to the receivables and liabilities with settlement according to the exchange rate of a currency, resulting from their evaluation or settlement;
j) the value of the commercial discounts granted after the invoicing, registered in the “709” account, according to the applicable accounting regulations;
k) the incomes related to the payment titles obtained by the persons entitled, according to the law, initial holders who are in the records of the Central Commission for the Settlement of Compensation or their legal heirs;
l) compensation received based on the judgments of the European Court of Human Rights;
m) the incomes obtained from a foreign state with which Romania has concluded a convention to avoid double taxation if they have been taxed in the foreign state.
If the invoices issued in the previous quarters were drafted incorrectly and in the months following the next quarter you corrected them (you mentioned that you partially reversed the invoices issued in the previous months), the taxable base of the tax on the income of the micro-enterprises in the respective quarters is reduced.
To recover the tax, you will prepare and submit corrective statements
According to art. 330 paragraph (1) letter b) of the Fiscal Code, in case the invoice was sent to the beneficiary, either a new invoice is issued which must contain, on the one hand, the information from the initial invoice, the number and date of the corrected invoice, the values with the minus sign or, after case, a statement stating that the respective values are negative and, on the other hand, the correct information and values, either a new invoice is issued containing the correct information and values and at the same time an invoice with the values with the minus sign or, as the case may be, with a statement stating that the respective values are negative, in which the number and date of the corrected invoice are registered.
So you have to be careful to correct the invoices issued according to the procedure provided in art. 330 paragraph (1) letter b) of the Fiscal Code.
If you issue a reversal invoice for a partial amount, the correction is assimilated, in my opinion, to a subsequent commercial reduction.
According to art. 53 paragraph (1) letter j) from the Tax Code, the taxable basis of the tax on the income of micro-enterprises is the income from any source, from which the value of the commercial reductions granted after billing, recorded in the “709” account, according to the applicable accounting regulations, is deducted.