The conditions for deductible expenses

The High Court of Cassation and Justice ruled that right of VAT deduction on acquisition of goods is conditioned by the destination of the bought goods, meaning that these must be destined for the use in behalf of the taxable operations of the companies and it must be justified with documents that must contain the minimal mandatory elements stated by Article 155, paragraph (5) of Law 571/2003 on the Tax Code. Also, the registration in the expenses accounts of some amounts of money isn’t enough by itself for the deductibility of these expenses at the calculation of the taxable profit, those amounts having to be justified by documents drafted according to law, which must prove the performing of the operation or of the inventory inflow. In the particular case, regarding the deductible fuel expenses, it was found that the company didn’t advance justificatory documents from which result the actual way by which the operations have been done with the purpose of obtaining taxable operations, not having been advanced the fuels expenses vouchers, costs made by the usage of the cars aimed for the taxi activity. Towards this company, correctly, the tax authority established that the company cannot benefit by a right of deduction in the matter of the fuel costs. (Decision no. 950 from 4th of March 2015 ruled in recourse by the Administrative and Tax Litigation Section of the High Court of Cassation and Justice having as object the imposition decision)

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Raluca-Andreea TRÎNCĂ-GĂVAN

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