The activity of the sole proprietorship X is “Bars and other drinking activities”, CAEN code 5630.
The period checked was:
– 01.01.2018 – 31.12.2021 VAT;
– 01.01.2018-31.12.2021 tax on income from self-employment and social contributions.
Main findings of the tax inspection bodies:
The audited taxpayer was registered for VAT purposes in the period 01.09.2015 – 01.03.2023, and from 02.03.2023 the territorial tax authority proceeded to the ex officio cancellation of the VAT registration, according to the provisions of Article 316, paragraph (11), title e) of Law No. 227/2015 on the Tax Code as amended.
It was found that the services purchased from the supplier Y Authorized Natural Person cannot be classified as intended for the performance of the business activity because the invoices issued do not mention the nature of the services rendered, no estimates, statements of work, reports, contracts or other related documents are attached from which it appears that the services were rendered for the purpose of performing the business activity.
At the same time, it was found that Individual Enterprise X has not fulfilled its declarative obligations regarding the income obtained from the economic activity for the period of verification, as provided for in Article 122, paragraph (1) of Law no.227/2015 on the Tax Code with subsequent amendments and additions.
In conclusion, as a result of the verification, additional tax liabilities in the total amount of x lei were established, as follows:
– x lei value added tax;
– x lei tax on income from self-employment;
– x lei social security contributions.
Source: ANAF