VAT reconciliation

deducerea-TVA-ului

According to the current legislation and available accounting information, services paid to a company that provides authorized destruction of goods are tax-deductible both for corporate income tax and VAT purposes.

A company that delivers unsellable/non-compliant stock to an authorized firm for destruction gains fiscal advantages while also protecting its reputational image.

If a company has degraded/unsellable/non-compliant goods and delivers them to an authorized company for destruction and recycling, the removal of these stocks from inventory benefits from VAT and expense deductibility, with no additional payments to the state.

Otherwise, if the degraded/non-compliant/unsellable stocks are not handled by an authorized firm, the related expense will be non-deductible for tax purposes, and the VAT previously deducted must be adjusted. This means that on the initial value (excluding VAT), additional corporate income tax of 16% and VAT of 19% will be calculated.

Example: Degraded stocks worth 10,000 lei

Additional taxes owed when the company does NOT use an authorized firm:

  • VAT on non-compliant stocks = 10,000 x 19% = 1,900 lei – VAT that must be adjusted and paid to the state
  • The expense related to non-compliant stocks is not tax-deductible, so additional corporate income tax on the stock value will be calculated: 10,000 x 16% = 1,600 lei
    Total additional taxes owed = 1,900 lei VAT + 1,600 lei corporate tax = 3,500 lei

Additional taxes owed when the company uses an authorized firm:

  • VAT on destroyed non-compliant stocks = 0 lei
  • The expense related to the destroyed non-compliant stocks is tax-deductible, and no additional corporate income tax is owed
    Total additional taxes owed = 0 lei VAT + 0 lei corporate tax = 0 lei
    The only additional cost is the destruction service fee, which is also tax-deductible.

Any stock must comply with VAT regulations, whether it is compliant or non-compliant.

Removal of non-salable inventory from accounting records

Expenses incurred for removing degraded goods from accounting records are tax-deductible when calculating corporate income tax.

VAT adjustment for non-salable inventory

According to current legislation, services paid to a recycling company for the destruction of goods are fiscally deductible.

Integrated waste management

We offer comprehensive and specialized solutions for the collection, disposal, and destruction of expired, damaged, counterfeit, confiscated, non-compliant, or specially regulated products.

Collection of electrical and electronic equipment

We provide integrated solutions for the efficient management of household and electronic waste, ensuring specific treatment for each category.

Discover the financial benefits of managing non-salable inventory