Deloitte and Romanian financial data website to help firms screen business partners

The Romanian subsidiary of global consultancy group Deloitte launches, in partnership with local financial and legal data provider Termene.ro, an application (PartnerSCAN) that allows companies to assess the potential tax risk of their Romanian business partners.

According to the VAT legislation in force, the VAT paying companies must prove they have checked their suppliers’ risk potential in order to safeguard their VAT deduction right. The fiscal authority has the right to refuse VAT deduction if the taxpayer “knew or should have known” that it has been involved in a fiscal fraud occurred in the supply chain of its purchases.

The rule also applies to insufficiently cautious taxpayers which involuntarily took part in a tax fraud, but who have had enough information to conclude that the transaction was part of a fraud.

“In the case of examinations from the fiscal authority, taxpayers need to demonstrate that they have acted in good faith by having assessed their business partners’ potential risks, in order to be able to claim the right to deduct VAT expenses. Besides the fact that this assessment is time-consuming, companies often face the difficulty to prove their good faith. PartnerSCAN is a solution that automates the procedure for evaluating the fiscal risk of Romanian business partners,” said Raluca Baldea, Indirect Tax Director, Deloitte Romania.

(Photo source: Shutterstock)