Tax inspection observations on a company whose activity is “Supply of steam and air conditioning”

S.C. X S.A. has as object of activity “Supply of steam and air conditioning”, CAEN code 3530.

Verified period: 01.01.2016-28.02.2022.

By analysing the documentation submitted by the audited company, the tax inspection authorities  found the following:

From the analysis of the submitted documentation, the tax inspection authorities  found that the company used the real losses mentioned in the energy balance sheet, without taking into account the level of technological losses, while the real situation of consumers and quantities of heat energy produced is known in real time by the company, as all quantities of heat and electricity produced, respectively quantities of natural gas consumed are metered both by existing meters at the production unit and on routes and at thermal points.

Thus, the tax inspection authorities found that the technological losses exceeded the amount of VAT deducted in the VAT returns, influenced by the percentage of use of raw materials for obtaining thermal energy by excluding consumers for obtaining electricity, and additional VAT was established in the amount of x lei.

The tax inspection authorities also adjusted the deducted value added tax on the entire amount of heat energy produced and not sold to consumers representing losses in the transmission-distribution process, adjusted for amounts exceeding the technological losses in the consumption rules, and additional VAT was established in the amount of x lei.

In the period 01.01.2016-28.02.2022, S.C. X S.A. deducted VAT in the amount of x lei for the expenses with affiliated vehicles owned and used, without submitting documents justifying that they were used exclusively for the purpose of economic activity, and additional VAT in the amount of x lei was established.

At the same time, from the checks carried out, the tax inspection authorities found that in July-August 2017 the company deducted VAT for purchases of services from S.C. M S.R.L., a company inactive when its VAT code was announced with the date of 18.05.2017, thus being established additional VAT in the amount of x lei.

Source: ANAF