The Romanian Tax Authority has published a draft version of the D394 form which includes a new subsection to be filled in. Subsection nr.8 will be dedicated to declaring sales or purchases to/from affiliated business.
The draft version of the return can be found at the following: link (see section 8).
This new reporting obligation might prove very challenging for external tax compliance solution as they are not aware of the affiliate status of their client’s business partners.
Based on the Romanian Law, a legal entity is affiliated with another legal entity if:
- the first owns directly, or indirectly a minimum of 25% of the value/participation titles, or voting rights of the other legal entity, or if it effectively controls the other legal entity.
Please note, however, that this is currently just draft proposal and can be subject to changes.
Contribution by Alexandru Marciuc, VAT process expert for the company Robert Bosch – automotive division.
