“S.C. X S.R.L., has as object of activity “Book publishing activities”, CAEN code 5811.
Period checked: 01.01.2016 -31.12.2020.
The main findings of the tax inspection authorities were:
The tax inspection authorities calculated additional corporate income tax in the amount of x lei due to failure to justify certain expenses by not submitting the purchase documents, i.e. documents justifying the purpose of the purchase, and income reversals. The taxpayer has recorded in the category of tax deductible expenses, expenses that are not based on documents drawn up according to the law from which it appears that they are for the purpose of realization of taxable income not meeting the conditions of deductibility within the meaning of the provisions of art. 25 paragraph (1) of Law no. 227/2015 on the Fiscal Code with subsequent amendments and additions.
At the same time, the tax inspection authorities did not accept for deduction VAT in the total amount of x lei given that the conditions for recognition of the right to deduct VAT are not met, namely the registration of purchases without holding invoices from suppliers, related to registrations and purchases of services that are not based on appropriate supporting documents (missing invoice and other supporting documents), which by their content demonstrate the nature of the services and the fact that these purchases were used for the purpose of its taxable operations.
Also, following the analysis of the documents submitted, the tax inspection authorities have established additional VAT collected in the total amount of x lei related to purchases of goods and services for which the person liable to pay value added tax is the beneficiary, namely S.C. L S.R.L.
Any taxable person registered for VAT purposes who makes intra-Community purchases of services is obliged to pay value added tax on these purchases, and also has the right to deduct, but within the limits and under the conditions laid down in Articles 297-301 of Law No. 227/2015 on the Tax Code, as amended and supplemented, by applying the reverse charge mechanism, i.e. by showing both the tax collected and the deductible tax on the VAT return.
Therefore, the obligation to pay value added tax on the transactions recorded in the accounts by the reverse charge mechanism is incumbent on X S.R.L. in accordance with the legal provisions on VAT, as it is the beneficiary of the services/goods in question.
Since S.C. X S.R.L. did not record in its accounting records and did not declare in its VAT returns D 300 the intra-Community purchases of services from some suppliers in EU Member States, the tax inspection authorities additionally established the VAT collected.
Source: ANAF