After the reactivation, the tax-payers:

• Will be able to invoice with VAT to the customers all the sells made during the time they did not have a VAT code, thus retrieving the collected tax;
• For the acquisitions due to the sells made during the time when the tax-payers had the VAT code cancelled, they will be entitled to deduct VAT after the re-registering;
• Their clients will be able to deduct the tax due to the purchases made during the time when the supplier had the VAT code cancelled, on the basis of the invoices issued after the re-registering;
• The expenses registered by the inactive tax-payers and their beneficiaries will be taken into account at determining the fiscal result regarding the profit tax, at the reactivation according to the Fiscal Procedure Code, either in the tax period of the current year, either by the adjustments of the profit tax statements for the previous fiscal year.

This info is issued by ECOVIS Romania as an informing letter over the most important evolutions/changes in the legal and tax fields, and in the investment environment in Romania as well. The information, the analysis and the comments mentioned above are of generic nature and it is not the intention or the imperative of the issuer to be used as a substitute for professional consulting dedicated to individual cases. For advice concerning your specific situation, please contact us  directly.

© ECOVIS Romania SRL – 2017