S.C. X S.R.L. has as its object of activity ‘Construction of residential and non-residential buildings’, CAEN code 4120. Period audited: 01.07.2017 – 31.10.2022. The main observations of the tax inspection authorities were as follows: during the course of the tax inspection, it was found that during the audited period, for some of its individual clients, S.C. X S.R.L. carried out sales (or promises to sell) of apartments and parking lots/boxes to the same client, on the same day or in short periods of time, but applied the 5% rate on the value of the dwellings and the 19% rate on the value of the household annexes. The tax inspection authorities found that, by cumulating the value of dwellings with the value of household annexes (parking spaces, garages, garages, etc.), for part of the delivery operations to individual customers, S.C. X S.R.L. erroneously applied the value added tax rate, as the condition that the value of the transaction did not exceed the limit of 450,000 lei, or 700,000 lei for the application of the reduced rate of 5%, was not met. As a consequence, the tax inspection authorities established additional VAT collected in the amount of x lei, composed of:
- x lei, which is the difference between the VAT resulting from the application of the 19% rate;
- x lei, which represents the difference between the VAT resulting from the application of the 5% VAT rate. Also, S.C. X S.R.L. did not have the right to deduct the value added tax in the amount of x lei, according to the legal provisions, which represents the VAT deducted from the invoice no. — /03.06.2022 issued by the insurance company Y, although the invoice was marked with the VAT rate of ‘0%’.
Source: ANAF