VAT for accessory expenses

Question:

A company that perform consulting services has mentioned in the contract the recovery from the beneficiary of the expenses regarding the accommodation, transport and daily allowances of the consultants. What is the applicable VAT rate considering that these expenses with accommodation, transport and daily allowances are accessory expenses of the consultancy services provided?

Răspunsul:

Answer:

According to the fiscal provisions, the VAT tax base includes ancillary expenses, such as: commissions, packing, transport and insurance expenses, requested by the supplier to the buyer or the beneficiary.

The expenses invoiced by the service provider to the buyer, which are the subject of a separate contract and which are related to these services, are considered ancillary expenses.

Thus, for the performance of some consultancy services, in the event that the provider establishes with the beneficiary or that the beneficiary will also bear the expenses with the consultants' travels, respectively transport, accommodation, daily allowances, other expenses, these are considered expenses accessory of the main service, respectively the consultancy service. and are included in its VAT base.

As a conclusion, in the case of a contract for consultancy services in which it is foreseen to recover from the beneficiary the expenses regarding the accommodation, transport and daily allowances of the consultants, these are included in the tax base of the consultancy services provided and invoiced with the same quota of VAT as well as consulting services.

Relevant legal base:

Art. 286 para. (3) letter b) from Fiscal Code

Point 30 para. (5) from Norms to Fiscal Code

See answer in romanian here