Professional Documents
Culture Documents
TYPES OF VAT:
TAXABLE PERSONS
Any person who independently carries out in any place any economic activity, whatever the purpose or results of
that activity.
Economic activities - all independently carried out activities of producers, traders and suppliers of services.
Registration of taxable persons for VAT purposes (art. 316 153)
a) prior to performance of economic activities if:
1. they declare that they are to post turnover equal to or more than the exemption ceiling (65.000 eur) for
the special exemption scheme for small enterprises;
2. they declare that they are to post turnover less than the exemption ceiling, but opt for the normal tax
scheme;
b) if during a calendar year turnover reaches or exceeds the exemption ceiling, within 10 days as of the end of
the month when this ceiling is reached or exceeded;
c) if the turnover obtained during a calendar year is less than the exemption ceiling, but they opt for the
normal tax scheme;
d) if they carry out VAT-exempt transactions and opt for the taxation thereof (renting, concession, letting and
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VAT REPRESENTATIVE
Taxable persons established in the Community (but outside Romania) and liable to pay Romanian VAT have to
register directly or may appoint a fiscal representative for VAT purposes in Romania.
Taxable persons not established in the Community, but liable to pay tax, is required to appoint a tax
representative as the person liable to pay tax.
If the foreign taxable person does not register for VAT purposes, the VAT liability shifts, in principle, to the
Romanian beneficiary of the supply (under the reverse charge mechanism).
TAXABLE OPERATIONS
Transactions subject to VAT refer to:
supply of goods and services
import of goods and
Intra-Community acquisitions of goods
Conditions:
- constitute or are assimilated with a delivery of goods or services;
- place of supply of goods or services is deemed to be in Romania;
- the supply of goods or performance of services is made by a taxable person;
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Services rendered by an
intermediary acting in the
name and on behalf of another
person
goods transport services other
than intra-Community transport
of goods
intra-Community transport of
goods
Intangible services (1)
The place where the means of The place where the means of
transport is actually made transport is actually made
available to the customer
available to the customer
Beneficiary
the
place
of
transport,
depending on the distances
covered
the place of departure
Beneficiary
Beneficiary
Telecommunication services;
Beneficiary
Radio and television services;
Services
provided
electronically (2)
the
place
where
the
beneficiarys their business or
their permanent address is
located or where they usually
reside
the place where the beneficiary
is established
TAXABLE BASE
VAT is assessed on the total amount received or to be received by the supplier, as consideration for the supply
of goods or services, including taxes, commissions, packaging, transport and insurance expenses.
The tax base tax shall not include the following:
- rebates, refunds, discounts, reversals and other price reductions that are granted by suppliers directly to
customers on tax chargeability;
- amounts accounting for damages, established by final and irrevocable court rulings, penalties and any
other amounts requested for the total or partial non-fulfillment of contractual obligations, if the amounts
are levied over the negotiated prices and/or tariffstax base;
- interest applied after supply date for late payments;
- the value of packaging that circulates between suppliers and customers, by exchange, without invoicing
etc.
The tax base shall be reduced in case of:
- full or partial rescindment of the contract for the supply of goods or services, prior to the supply, but for
which advance invoices were issued;
- total or partial refusals as regards the quantity, quality or prices of goods or services supplied, as well as
in case of the partial or full cancellation of the contract for the supply;
- rebates, refunds, discounts, reversals and other price reductions granted after the supply of goods or
services;
- returned packaging in which the goods are dispatched, for packaging that circulates based on invoicing
etc.
TAX RATES
20% standard rate, which is applicable to supplies of goods and services not subject to VAT exemptions or
to the reduced rate (A company transports the books produced in its printing house);
9% reduced rate, which is applicable to the supplies of certain goods/services specifically enumerated in the
Fiscal Code, such as sale of medicines, hotel accommodation;
5% reduced rate shall be levied to the tax base for supply of social houses, including of the land below,
books, tickets for museums, cinemas and others. (A company sells the books produced in its printing house).
Romania
Intra-community acquisition - taxable
Acquisition date IC: 29/06/2016
Chargeable event : 29/06/2016
Chargeability date: 15/07/16
The acquisition is included in the recapitulative
statement for the 3rd quarter of 2016.
Romania
Intra-community acquisition - taxable
Acquisition date: 29/06/2016
Chargeable event: 29/06/2016
Chargeability date: 29/06/2016
The acquisition is included in the recapitulative
statement for the 2nd quarter of 2016.
Beneficiary (Client)
Chargeability
at invoice payment
at invoice payment
at invoice payment
at invoice date
VAT collection
Supplier
applies the system
doesnt apply the system
applies the system
doesnt apply the system
Beneficiary (Client)
applies the system
applies the system
doesnt apply the system
doesnt apply the system
Chargeability
at invoice encashment
at invoice date
at invoice encashment
at invoice date
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Supplier
Sale
4111 = 701
4428
Payment of supplier
401=5121
4426 = 4428
Encashment date
5121 = 4111
4428 =4427
EXEMPT OPERATIONS
Supplies within the scope of VAT are classified as taxable operations and exempt operations.
Exempt operations are divided as follows:
exempt supplies with credit for VAT deductible: intra-Community supplies of goods under certain
conditions, exports and other similar supplies, international transportation, as well as specific exemptions
related to international traffic of goods;
exempt supplies without credit for VAT deductible: healthcare services, educational services, financial
and banking services, supply of immovable property, except for new building, lease and renting of
immovable property with certain exceptions;
exemption for import and intra-Community acquisitions of goods whose local supplies are exempted.
The following transactions are VAT exempt with credit for VAT deductible:
- supply of goods placed under a bonded warehouse customs procedure;
- goods introduced in free trade zones;
- goods under an inward processing procedure etc.
REFUND OF VAT
If the deductible VAT exceeds the collectible VAT, the recoverable balance VAT (defined as negative VAT
balance) can be:
carried forward to the next period; or
refunded by the tax authorities, based on the option expressed by the taxpayer in the VAT return.
The option can be exercised only for a negative VAT balance exceeding 5,000 lei.
A taxable person established in the Community that is not registered or liable to register for VAT purposes in
Romania may request a refund of VAT paid.
A taxable person not established in the Community that is not registered or liable to register for VAT purposes
in Romania may request the refund of the VAT paid if, under the laws of its country of establishment, a taxable
person established in Romania has the same right in that country.
ADJUSTMENT OF INPUT VALUE ADDED TAX
in case of acquisitions of services and goods, other than capital goods
tax in case of capital goods
tax in case of capital goods
Capital goods:
- all fixed tangible assets, as well as the construction, transformation or modernization of immovable
goods
- assets subject to rental, leasing, concession
Where self-supply rules do not apply, the tax deducted for capital goods shall be adjusted:
Cases
Period
capital goods
5-year
acquisition, construction, transformation or modernization of an 20 years
immovable property, if the transformation or modernization amounts
to at least 20% of the aggregate amount of the construction thus
transformed or modernized
tax in case of capital goods
Capital goods:
- all fixed tangible assets, as well as the construction, transformation or modernization of immovable
goods
- assets subject to rental, leasing, concession
Where self-supply rules do not apply, the tax deducted for capital goods shall be adjusted:
Cases
Period
capital goods
5-year
acquisition, construction, transformation or modernization of an 20 years
immovable property, if the transformation or modernization amounts
to at least 20% of the aggregate amount of the construction thus
transformed or modernized
INVOICING
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Acquisition
371 = 401A 5.000
4426 = 4427 5.000 * VAT quota from the buyers
state 19,5 %
2. The client is not a VAT payer, taxable person, and
its total acquisitions are less than 10.000 EUR:
Pays VAT from the state of the supplier.
371 = 401A 5.000 +5.000 * 20%
3. The client is not a VAT payer, taxable person, and
its total acquisitions are more than 10.000 EUR:
It registers as VAT payer according to art. 317 1531
and pays through the special statement.
371 = 401A 5.000 EUR
371 = 4423 5.000 * 19,5%
4. The supplier is a VAT payer and has distance sales 4.a. The client is not a taxable person, it doesnt
less than 35.000 EUR*:
transmit its VAT code and its total acquisitions are
It invoices with VAT from its state.
less than 10.000 EUR:
It receives the invoice with Romanian VAT
4111B = 707 5.000
4427 20%
371 = 401A 5.000 +5.000 * 20%
The intra-community supply is not exempt of VAT.
It will invoice with VAT from the state where the
transport of goods starts.
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THE IMPORT
1. Import of common goods:
- payment of VAT in the customs: 4426 = 5121
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I. Import
The taxable person is B, the importer
The transaction is taxable - import of goods
The place of import - Romania, where the goods are when they are introduced in the Community
It is an exempt transaction, because it follows an intra-community supply VAT exempted. At the import date,
the importer must prove that there will be an ulterior intra-community supply (for example the proof of
transport and the VAT code of the final recipient).
The person obliged to pay VAT it is not the case (the Greek company will pay)
371 = 401A 15.000 EUR
II. The ulterior delivery
The taxable person is B.
The transaction is taxable intra-community supply
The place of supply is Romania, the member state where the import takes place, instead of the place where the
transport starts.
There is exemption if the 2 conditions are fulfilled: the transport prove and the VAT code of the buyer.
B is not obliged to pay the VAT. The transaction must be included in the statement for the exempt intracommunity supplies.
4111C = 707 20.000
The VAT is applied to the acquisition cost (from the external value), the supplementary costs (commissions,
packing, transport, insurance), taxes, commissions and duties owed outside Romania, as well as those related
to the import.
The payment of VAT is the importers obligation.
The VAT is paid in customs, based on DVI.
A
Italy
Useful links
www.anaf.ro
VAT Information Exchange System - V.I.E.S.
Sistemul M1SS
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