- If the software purchase is classified as a provision of electronic services (not a royalty), the Romanian microenterprise must apply the reverse charge mechanism for VAT.
- VAT is declared and paid using form D301, as per art. 326 of the Fiscal Code.
- The transaction is not reported in D390.
- The company cannot deduct the VAT, as it is not VAT-registered under art. 310.
- Incorrect classification of the transaction can lead to tax adjustments, penalties, and reclassification risks during audits.
Source: teaha.ro
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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