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What do you do when your PFA exceeds the VAT cap?
The establishment and operation of the PFA is regulated by Emergency Government Ordinance no. 44/2008 regarding the conduct of economic activity by authorized natural persons, family enterprises and individual enterprises.
A PFA may have as object of activity no more than 5 classes of activities in the NACE code list. In order to carry out authorized activities, it may establish contractual relations with any natural or legal person, including other PFAs, family or individual businesses, without changing their legal status. An PFA may carry out its own licensing activities, or together with up to 3 people employed on an individual employment contract. The PFA holder can also be employed at the same time, regardless of whether the employer is in the same job or different from the PFA holder. However, an PFA holder can not be the owner of an individual enterprise at the same time, as it can only carry out its work using its own professional skills and labor. At the same time, the holder of a PFA is responsible for the assets of the property patrimony, but also for the personal ones (if the receivables exceed the patrimony of damage) in the case of the obligations assumed regarding the exploitation of the economic enterprise.
As far as the accounting of a PFA is concerned, it is kept in the simple game, in the national language and the national currency. Any economic and financial operation is recorded in a document underlying the bookkeeping, as well as a supporting document, at the time of its execution. The supporting documents must contain: name of the document, name, address of the person who draws up, number and date of preparation, CIF – where appropriate, content of the operation and legal basis (if applicable), quantitative and value data and other elements ensuring complete recording of the operation .
No corrections, erasures or other insignia are allowed on the financial and accounting documents of a PFA, as well as the absence of tabs or blank spaces between the entered operations. Errors must be corrected by cutting with a line and above the correct text / digit and must be made on all copies of the document being confirmed by the signature of the person who drew up or corrected the document as well as the correction date.
Documents required for debit if a PFA exceeds the VAT cap:
– Statement 070 – Tax Registration / Entries / Deletions
– Shopping log
– Sales log
– Fiscal collection of receipts and payments
The aforementioned documents will have to be filed with the Financial Administration to which the PFA’s registered office belongs.
For more information, feel free to contact our law firm Darie, Manea and Associates. We offer free counseling!