Atypical Fiscal States: Fiscal Inactivity State and the Fiscal Body Ex-Officio Cancellation of the Registration Code for VAT Purposes

The state of fiscal inactivity of a tax payer, as well as the cancellation of the registration code for VAT purposes, generate important fiscal effects, both for the tax payers concerned and for the beneficiaries that purchase goods and services from them. In case these tax payers continue to develop economic activities, they are subject to the obligations regarding the payment of the taxes and dues stipulated by the law, but, in the respective period, they do not benefit from the right of deductibility of expenses and of the value added tax corresponding to the purchases performed. Correlatively, the beneficiaries that purchase goods and services from such persons do not have the right to deduct the value added tax corresponding to the acquisitions performed and of the respective expenses. In this article, we shall present the legal status of these atypical fiscal states, respectively: the situations that generate these states, the fiscal effects produced on the suppliers/providers; the fiscal effects on the beneficiaries; the situations of reactivating or re-registering of the tax payers, as well as the Registers organized by the National Agency for Fiscal Administration (ANAF).