S.C. X S.R.L.
Its object of activity is “Manufacture of other general-purpose machinery and equipment n.e.c.”, CAEN code 2829.
The period audited was: 01.09.2021 – 31.12.2021.
The main results of the tax inspection were:
When registering for VAT purposes in Romania, the non-resident taxpayer submitted to the tax authority a declaration stating that it intended to carry out supplies of goods (equipment with installation) in Romania, but from the explanations given by the representative of the non-resident taxpayer it appeared that the equipment and services were delivered to the beneficiary of project X, namely S.C. C S.R.L.
Discrepancies were found between the total value of the works, according to the contract concluded on 25.10.2019 between the parties, on the one hand, and the total invoices issued and the net order value entered in the final invoice issued on 23.12.2021, on the other hand.
The contract concluded between the parties, presented by the non-resident taxpayer during the tax inspection for the period 01.12.2020 – 31.08.2021, does not contain any mention of the modification of the contract price, the date of completion, respectively the acceptance of works related to the project.
In accordance with the provisions of Art. (1) letter b) of Law no. 227/2015 on the Tax Code, as subsequently amended and supplemented, the place of delivery of goods shall be deemed to be the place where the installation or assembly is carried out by the supplier or by other third parties on behalf of the supplier, in the case of goods subject to installation or assembly, namely in Romania.
Thus, in relation to invoice no. –/23.12.2021, in the amount of x lei , representing the final invoice issued for the supply of goods with installation on the territory of Romania, the tax inspection authorities established additional VAT collected in the amount of x lei , in accordance with the legal provisions, reduced by the amount of VAT collected related to the advance payment received and the amount of VAT deducted related to the purchases during the period under review.
Source: ANAF