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The lack of ‘sufficient’ explanatory documents can be considered the main vulnerability of companies dealing with fiscal inspections, especially for those which purchase services.
In practice, in order to approve VAT deduction, fiscal authorities place emphasis on justifying the performance of the services by demanding a large volume of explanatory documents, an enhanced attention being placed on management and consultancy services.
Nevertheless, it is not clear if this approach in justified in all cases.
For more information, please see the Romanian version of the article, here.
