P.F.A. X, whose business activity is ‘Agents involved in the sale of products of a specific character, n.e.c.’, CAEN code 4618.
The period covered was: 01.01.2017-31.12.2021.
The main findings of the tax inspection authorities were:
For the period 01.01.2019-31.12.2021, P.F.A. X did not submit VAT returns (D300) and information returns (code 394) on supplies/provisions and purchases made within the national territory.
As of 01.08.2019, P.F.A. X had its VAT registration cancelled, ex officio, as required by the related provisions as it has not submitted VAT statements (D300) for two consecutive calendar quarters.
From a check of the accounting records, the tax inspection authorities found the following:
In the period 01.01.2017-01.08.2019, VAT collected was erroneously calculated by applying the VAT on collection system, considering the factut that P.F.A. X was no longer registered as a “person applying the VAT on “collection” system”, thus being established additional VAT collected.
In the period 01.08.2019-31.01.2022, the VAT code was cancelled ex officio, thus, “during the period in which taxpayers have their VAT code cancelled ex officio by the tax authorities, on the grounds that they have not submitted any VAT returns for six consecutive months of two consecutive calendar quarters, they have a number of obligations”, according to legal provisions
– according to the invoices recorded by P.F.A. X in the purchase journal, the expenses representing “purchases of goods used for personal use or that of his family, expenses for private life insurance made in his own name”, were established as non-deductible, as they are not intended to be used for the benefit of taxable operations related to the taxable activity carried out in the period 2017-2021.
Source: ANAF