Tax inspection remarks at a company with the activity “Information technology consultancy activities”

S.C. X S.R.L. is engaged in “Information technology consultancy activities”, CAEN code 6202.

Verified period: 01.01.2019 – 31.12.2020, VAT.

The main remarks  of the tax inspection authorities  were:

The activity of company X S.R.L. consists in purchasing digital content from third party providers in Romania (artists) and reselling this content (content) to the company D 1T of member status X, operator of the website LiveJasmin (digital content of interactive sessions also known as videochat).

From the analysis of ANAF databases, the tax inspection authorities found that the audited company declared during the period under review the provision of services to company D 1T from member status X in the amount of x lei.

In view of the income declared by S.C. X S.R.L. and in accordance with the legal provisions, the tax inspection authorities  established the respective activities as the provision of entertainment services, in particular video-chat, for VAT purposes.

Accordingly, the tax inspection authorities established that the video-chat activity being an entertainment service for adults, whose place of performance is in Romania, the services thus rendered are taxable operations taxable from the point of view of value added tax, thus, S.C. X S.R.L. was obliged to declare and pay VAT in the amount of x lei related to the income obtained as a result of electronic video transmissions.