In accordance with the provisions of the Law no.227 / 2015 on the Fiscal Code and the implementing rules, small value goods free of charge under the protocol actions are not considered to be deliveries if the value of each offered gift is less than or equal to the 100 Ron , excluding VAT.
In case that the taxable person also offered gifts that exceed the individual Ron 100, excluding VAT, the sum of the overruns related to a tax period, which is a delivery of goods for payment, and collects the tax if the tax related to the respective goods is deductible totally or partially.
It is considered that the delivery of goods takes place on the last working day of the tax period in which the goods were granted free of charge and the limit was exceeded.
The taxable amount, ie the value of the overruns and the related tax, are entered in the invoice which is included in the tax return for the tax period in which the taxable person has provided the goods free of charge under the protocol actions and has exceeded the limit.
If the value of the goods considered as low value is exceeded and the VAT collection is required, the following shall be recorded on the basis of the invoice issued for the purposes of VAT adjustment:
623 „ Protocol, and advertising expenses” = 4427 „Turnover tax (VAT collected)”
From the tax point of view, it is mentioned in the protocol expenses for the calculation of the corporate tax that value added tax is also shown for the ceiling / gift / client overruns. Thus, “Art. 25 – Expenditure “provides as follows: Protocol expenses have reduced deductibility, up to a limit of 2% applied to the accounting profit plus the corporation tax expense and protocol expenses.
Included in the protocol expenses are also the expenditures registered with the value added tax collected according to the provisions of the Title VII for the gifts offered by the taxpayer, with a value exceeding 100 lei. Therefore, according to the tax provisions, in order for the VAT for exceeding the 100 Lei / gift should be included in the correct category in the calculation of the profit tax, it should be recorded on account 623.
On the other hand, as far as assets are concerned, OMFP 1802/2014 provides in section 1.2. that the purchase price of the goods includes the purchase price, import taxes and other taxes (except those which the legal entity can recover from the tax authorities), transport, handling and other expenses that can be attributable directly to the purchase goods.
In conclusion, taking into account the definition of the acquisition cost and tax provisions mentioned above, overpayment VAT should be recorded on account 623, the accounting note being:
623 „ Protocol and advertising expenses “= 4427” Turnover tax (VAT collected”)