We draw attention that the number of notifications on declaring fiscal inactivity has increased considerably lately, from the experience of Contexpert team. The main three reasons ANAF sends these notifications are: the functioning period of the company has expired, the act for the space used as headquarters has expired or the statutory bodies of the company are no longer available. We point out that, although the fiscal authorities grant a period of 30 days to fix the problems, sometimes, in practice this term may not be fulfilled due to various situations. If the fiscal authorities declare the fiscal inactivity, the company loses the VAT purposes code and therefore the right to deduct the tax.
In what cases may ANAF declare fiscal inactivity?
Please note that starting with this year, as a result of the amendments to the Fiscal Procedure Code (Law 207/2015), there have been introduced 3 new situations in which the taxpayer or any entity without legal personality may be declared fiscal inactive and suffers the consequences of the provisions of Fiscal Code regarding the inactivity, namely:
Due to the novelty of these provisions, the effects – the notifications – has become visible in recent weeks.
These three situations add to another four that were provided until this year, namely:
In conclusion, you must check if the mentions regarding the headquarters, company or statutory bodies of the company made to the Trade Register are updated. Keep in mind that Recom and NAFA exchange information.
If you have been notified you must fix the problems within 30 days, otherwise the company will become inactive and the VAT number will be cancelled. If such situations arise due to ANAF error (faulty communication between databases of public institutions), then the decisions are cancelled with effect for both future and past.
The procedures for the inactivation / reactivation are found in OPANAF 3846/2015.
Which are the consequences of declaring fiscal inactivity?
According to the Fiscal Code, in case ANAF declares fiscal inactivity of a taxpayer, VAT purposes code is cancelled, with consequences for the deduction of VAT and VAT related adjustment of existing fixed assets at the date of declaring inactivity. Also the taxpayer loses its right to deduct expenses incurred over the period when the VAT code is inactive. Meanwhile, business partners lose their right to deduct VAT on expenses and invoices received from a supplier without a VAT code.
Those who end up losing the VAT code must fulfill both obligations to be reactivated – by fixing problems that led to this situation – and those to re-record for VAT purposes, covering procedure that involves submitting form 088. Recall that both the form and the procedure have been changed and applies in the new form, from august 1, 2016. Filling form 088 means an assessment by the tax authority of the tax risk (small , medium, large).
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