IDEAS home Printed from https://ideas.repec.org/a/lum/rev1rl/v5y2013i2p51-57.html
   My bibliography  Save this article

Remarks Regarding the Activity of Taxpayers Declared Inactive and Subsequent Economical Consequences

Author

Listed:
  • Despina-Martha ILUCA

    (Undergraduate, 4th year, Faculty of Law, “Alexandru Ioan Cuza” University, Iaşi, Romania;)

Abstract

Declaring a taxpayer as inactive is a procedure founded on expressly stipulated law conditions and it has both individual effects and effects on the relation established between an inactive taxpayer and an active one. The primary effect, which is the cause for all of the others, is the ex officio cancellation of the VAT registration. This marks the loss of the taxpayer’s right to deduct the VAT using the “downstream VAT – upstream VAT” mechanism, becoming just a final consumer. The active taxpayer engaging in commercial transactions with an inactive taxpayer cannot deduct expenses, nor the VAT, as these operations are based on a document that is not issued in accordance with the legal provisions.

Suggested Citation

  • Despina-Martha ILUCA, 2013. "Remarks Regarding the Activity of Taxpayers Declared Inactive and Subsequent Economical Consequences," Revista romaneasca pentru educatie multidimensionala - Journal for Multidimensional Education, Editura Lumen, Department of Economics, vol. 5(2), pages 51-57, December.
    • Handle: RePEc:lum:rev1rl:v:5:y:2013:i:2:p:51-57
    as

    Download full text from publisher

    File URL: http://revistaromaneasca.ro/2014/01/remarks-regarding-the-activity-of-taxpayers-declared-inactive-and-subsequent-economical-consequences/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    inactive taxpayer; reactivation; economical effects; VAT;
    All these keywords.

    JEL classification:

    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lum:rev1rl:v:5:y:2013:i:2:p:51-57. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Antonio Sandu (email available below). General contact details of provider: https://lumenpublishing.com/journals/index.php/rrem/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.