5 Major Developments in Romania

5 Major Developments in Romania

• Proposal for a 5% VAT Rate on wood mass in the form of sawdust, shavings, wood waste and scrap, ….

• Romanian Government Proposes New Criminal Offense for Cross-Border VAT Fraud

• Romania: Ordinance to execute EU Directive on automatic information exchange for digital platforms

• Romania authorised until 31 December 2025 to levy VAT from buyers of wood products

• SAF-T reporting, next level. How can a company ensure that the statement is correct and complete?

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Customs

• Changes introduced to the Customs Code: GEO no. 85/2022

• The procedure for the use and operation of RO e-Transport System: ANAF/AVR Order no. 1190/4625/2022 and GEO no. 106/2022

DAC7

• Implementation of DAC7

• Romania Implements DAC7
• Ordinance Implementing DAC7 EU Directive on AEOI for Digital Platform Operators

Deduction (Input Tax Credit)

• ECJ VAT C-519/21 (DGRFP Cluj) – Judgment – Right to deduct VAT even if status of taxable person can not be established 

Digital Service Tax

• Romania: Ordinance to execute EU Directive on automatic information exchange for digital platforms

ECJ (European Court of Justice)

• ECJ C-696/22 (C SPRL) – Questions – Collected of VAT only when the consideration for the services was received and not when the services were actually provided

• ECJ C-461/21 (Cartrans Preda) – AG Opinion – Exemption for (transport) services to imported goods, evidence required?

• New ECJ VAT case C-179/23 Credidam vs RO

• ECJ clarifies VAT rules for association contracts without legal personality in Romania  

• Referral to ECJ C-69/23 (Streaming Services) – Place of taxation of interactive sessions with Erotic content 

• ECJ VAT C-519/21 (DGRFP Cluj) – Judgment – Right to deduct VAT even if status of taxable person can not be established 

• ECJ Excise Duty Case C-332/21 (Quadrant Amroq Beverages SRL) – Judgment – Excise Duty Exemption for Ethyl Alcohol intended to be used and already used 

E-Invoicing

• Latest updates on the Romanian CTC obligation
• Modification of the procedure for the use and operation of the RO e-Invoice: OMF no. 1667/2022
• New Amendments Regarding the Application of the RO E-transport System 
• Romania B2B RO e-invoicing eFactură delayed till 2024 
• B2G and B2B e-invoicing with the RO e-Invoice platform 

Excise

• ECJ Excise Duty Case C-332/21 (Quadrant Amroq Beverages SRL) – Judgment – Excise Duty Exemption for Ethyl Alcohol intended to be used and already used 

Exemption

• ECJ C-461/21 (Cartrans Preda) – AG Opinion – Exemption for (transport) services to imported goods, evidence required?

Fiscalization

• The period during which companies are obliged to archive financial-accounting documents, drastically reduced
• In what situations do taxpayers have to file an F4105 notification in Romanian fiscalization?
• Romania significantly reduced the amount of time businesses were required to keep certain data on fiscal devices
• Regulations for introducing tip taxation into the Romanian fiscal system (RO)
• The Romanian government provides the first technical and functional details of the vending machines that require connection to fiscal electronic cash registers 
• First technical and functional details of vending machines requiring connection to fiscal electronic cash registers
• Romania introduces rules for tip taxation

Fraud / Tax evasion

• Romania authorised until 31 December 2025 to levy VAT from buyers of wood products
• Romania To Ramp Up Penalties For VAT Fraud 
• Romanian Government Proposes New Criminal Offense for Cross-Border VAT Fraud
• Derogation proposal for Romania to continue to apply a domestic reverse charge for supplies of wood products

Intrastat

• Check out the new INTRASTAT rules in Romania

Liability (Reverse Charge/Withholding)

• Extension of the authorisation for Romania to continue to apply a reverse charge for wood supplies
• Council Implementing Decision to allow Romania to apply reverse charge on domestic supplies of wood
• Romania authorised until 31 December 2025 to levy VAT from buyers of wood products
• Proposal European Commission to allow reverse charge on domestic supplies of wood

Place of Supply

• Romanian Government Proposes New Criminal Offense for Cross-Border VAT Fraud 

Rate

• Romania Expands Products and Services Qualifying for 9% VAT Rate on Fertilizers, Other Agricultural Products
• Law to reduce VAT To 5% on solar panel installations
• Romania Updates Types of Agricultural Supplies Subject to 9% VAT Rate
• VAT rate changes in Romania to keep in mind starting 2023
• Romania reduces VAT on residential solar to 5%
• Proposal for a 5% VAT Rate on wood mass in the form of sawdust, shavings, wood waste and scrap, ….
• Romania Proposes Reduced 5% VAT Rate on Delivery of Sawdust, Wood Waste and Similar Products 
• 5% VAT for the delivery of social housing 
• Romania raises VAT on hotels and catering to 9% Jan 2023
• Combined Nomenclature applicable as of 1 January 2023: Regulation (EU) 2022/1998
• Clarifications brought to the notion of “habitable” housing at the time of delivery for the application of the 5% VAT rate: Law no. 301/2022 
• VAT rate increases to 9% (from 5%) for hotel accommodation, restaurant and catering services (and other VAT rate changes)

Real Estate/Immovable Property

• 5% VAT for the delivery of social housing

Reporting Compliance

• 5 VAT Country guides on Romania 
• A guide to VAT – Doing business in Romania
• Combined Nomenclature applicable as of 1 January 2023: Regulation (EU) 2022/1998
• WTS VAT newsletter #4 2022

Real Time Reporting/Continuous Transaction Controls

• Latest updates on the Romanian CTC obligation – VATupdate

Registration

• Romania Introduces Initial VAT Registration as Part of Registration at Trade Register

Reporting Compliance

• A guide to VAT – Doing business in Romania

SAF-T (Standard Audit File for Tax)

• Romania SAF-T

• SAF-T reporting, next level. How can a company ensure that the statement is correct and complete?  

Supply of Services

• Romanian Government Proposes New Criminal Offense for Cross-Border VAT Fraud 

Taxable Amount

• Tipping must be taxed regardless of whether the covered taxpayer in Romania pays VAT or not

• ECJ C-461/21 (Cartrans Preda) – AG Opinion – Exemption for (transport) services to imported goods, evidence required?

Tax authorities / Penalties

• ANAF announces that tax inspections will no longer be carried out at the companies’ headquarters but directly from the offices of the Romanian TA

• Romania To Ramp Up Penalties For VAT Fraud
• Inconsistency criteria that ANAF can use to start a tax audit of a company in Romania
• Approving the risk sub-criteria developed from the general criteria provided by the Fiscal Procedure Code: OPANAF no. 2017/2022

Tax Point (When the Chargeable Event Occurs)

• ECJ C-696/22 (C SPRL) – Questions – Collected of VAT only when the consideration for the services was received and not when the services were actually provided
• ECJ VAT C-519/21 (DGRFP Cluj) – Judgment – Right to deduct VAT even if status of taxable person can not be established

Taxable Person

• ECJ VAT C-519/21 (DGRFP Cluj) – Judgment – Right to deduct VAT even if status of taxable person can not be established