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Reality test of executed services

High Court of Cassation and Justice ruled that to qualify for tax deductibility, services should not be included in invoices only generic, but it is necessary to prove the reality and effectiveness of their provision valid agreements, such as contracts with providers, work situations, records, activity reports, as required for the relevant services to serve their taxable transactions carried out by the beneficiary. In this case, the High Court held, based on documents filed, that reality has not proven sales performance vehicle brokerage services as bill does not specifically describe the alleged services performed by intermediaries, their attachments being signed by the provider, any beneficiary. The contracts raised by the appellant concerns the obligation on the provider to give the beneficiary written work, “regardless of how service provision” and there is no appendix to include information on the type of vehicle, the customer and negotiated amounts for each vehicle sold. In addition, brokerage services are rendered by employees of the appellant, who were directors of the company and the quality of service, they receive both the recurrent salary and commission from the provider companies, not as reality proved performance of the services invoiced by the companies and, therefore, with no right to deduct VAT. ( Decision no. 581 from 7th of February 2012 pronounced in appeal by the Administrative and Fiscal Department of High Court of Justice and Cassation, having as object anullement of a tax decision issued by the tax authorities)

>> The source: JURIDICE.ro

Daniela GHICAJANU

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