ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA

THE VALUE ADDED TAX (VAT)

The Romanian VAT system is modeled on the EU VAT Directive and aims at full harmonization.

TYPES OF VAT:

deductible VAT (4426) applied to acquisitions

collectable VAT (4427) applied to sales
VAT to be recovered (4424) the positive difference between deductible VAT and collectable VAT (fiscal
claim)
payable VAT (4423) the positive difference between collectable VAT and deductible VAT (fiscal debt)
unexpired VAT (4428)

The VAT settlement:

at the end of every month
the closure of the VAT accounts 4426 and 4427 in order to determine the amount to be paid/recovered
to/from the state.
Transactions:
Ist case: 4426 > 4427
%
=
4426
4427
4424
IInd case: 4426 < 4427
4427
=
%
4426
4423
The payment is done until the 25th of the next month of each month / quarter.
The reimbursement is done only if the taxpayer asks it by marking the corresponding square from the VAT
statement.

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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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
leasing of immovable property; the supply of constructions / parts thereof, and of the land on which they stand, as
well as of any other land).
The registration may be performed before carrying out any taxable or/and exempt with right of deduction
operations.
Registration for value added tax purposes of other persons that perform intra-Community acquisitions or
acquisitions for services (Art. 317 1531 )
When a intra Community acquisition of goods or services is done.
Discussions:
Case of public institutions?
Case of an individual selling real estate property

Cancelation of VAT code

Competent tax authorities shall cancel the registration for VAT purposes of a person, according to this article as
follows:
a) if they are declared inactive;
b) if they are under temporary inactivity, registered with the Trade Register;
c) if the tax records of the taxable persons partners /directors or of the taxable person itself include
economic offences and/or the violations;
d) if the person failed to submit in the course of a calendar half year any tax return;
e) if in the tax returns filed for 6 consecutive months in the course of a calendar half year;
f) if, under this title, the taxable person was neither required nor entitled to apply for VAT registration
g) in the case of taxable persons requesting to be removed from the records of persons registered for VAT
purposes with a view to applying the special exemption scheme;
h) if the taxable person fails to substantiate its intention and capacity to carry out economic activities in line
with relevant criteria and within the deadlines established by ANAF order .

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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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
-

the supply of goods or services from an economic activity.

There are also taxable operations:

- import of goods made in Romania, if the place of the import is Romania;
- intra-community acquisitions, with exceptions;
- any intra-community acquisition of new means of transport;
- any intra-community acquisition of excisable products.
The following intra-community acquisitions are not considered taxable operations in Romania:
- are carried out by a taxable person that performs only supplies of goods or services for which the tax is not
input, or by a non-taxable legal person;
- the value of the intra-community acquisitions does not exceed the amount of EUR 10,000.
Even if the above-mentioned conditions are fulfilled, a person has the right to embrace the general taxation
regime. The registration must produce its effects at least during the next 2 years.
If the limit of 10.000 EUR is over passed, the buyer must register as VAT payer. The registration will produce
its effects at least in the current year, as well as in the next one.
Supply of goods
Supply of goods refers to the actual transfer of the right to dispose as owner of the goods from one person to
another against payment, directly or through an intermediary.
As a rule, a supply of goods has the place of supply where the goods are located at the moment when the
delivery takes place, with certain exceptions for goods to be transported, installed, goods to be delivered on
board of ships, aircraft, trains and for distance sales, provided certain conditions are met and others.
- Internal supply of goods
- Intra-Community supply of goods (A Romanian company sells merchandise to a Greek company
registered as a VAT payer)
Supply of services
The term services applies to all transactions not treated as supply of goods.
The supply of services is taxable in Romania if the place of supply is deemed to be in Romania.
The general rule: The place of supply is considered to be:
Business to business (B2B)
Business to customer (B2C)
The place where the beneficiary is established
The place where the supplier is established.
Business - a taxable person or a non-taxable legal person registered for VAT purposes
Customer - a non-taxable person
Exceptions from B2B and B2C:
Business to business (B2B)
Services related to immovable The place where immovable
property
property is located
Transport of passengers
The
place
of
transport,
depending on the distances
covered

Business to customer (B2C)

The place where immovable
property is located.
The
place
of
transport,
depending on the distances
covered
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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
Restaurant
and
catering
services
Restaurant
and
catering
services physically carried out
on board ships, aircraft or
trains during the leg of a
passenger transport operation
carried
out
within
the
Community
Short-term rental of means of
transport

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 of actual supply

The place of actual supply

The place of departure for The place of departure for

passenger transportation
passenger transportation

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

Business to business (B2B)

Beneficiary

Business to customer (B2C)

The place where the underlying
transaction is carried out

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

(1) Services such as:

rental of movable tangible property, with the exception of transport means;
leasing transactions of movable tangible property, with the exception of all transport means;
transfers and/or assignments of copyrights, patents, licences, trademarks and similar rights;
advertising services;
services of consultants, engineers, legal advisors and lawyers, accountants and chartered accountants,
consultancy bureaus and other similar services, as well as data processing and the supplying of information;
banking, financial and insurance transactions including reinsurance, with the exception of the rental of safe
deposit boxes;
the supply of staff;
the provision of access to a gas system within the Community or a network connected to such system, to
power networks or heating or cooling networks, transport and distribution through such systems or networks,
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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
and the provision of other directly linked services
(2) Special scheme (art. 314 and 315 1524 and 1525):
for non-established in UE taxable persons supplying electronic services to non-taxable persons - for all
electronic, telecommunications, broadcasting services supplied to non-taxable persons who are
established, have the domicile or regular residence in the European Union.
for electronic, telecommunications, broadcasting services supplied by taxable persons not established in
the European Union, but established in other Member State than the Member State of consumption
the taxpayer receives a special VAT registration number
must submit, by electronic means, to the competent tax authorities a special value added tax return within
20 days the total tax due collected from each Member State of consumption where the tax is chargeable;
The special value added tax return shall be prepared in EUR;
shall pay the total amount of the tax due in the European Union in a special bank account denominated in
EUR;
may not exercise the right to deduction via the special return.
Import of goods
Goods brought from outside the Community and introduced into EU territory in Romania are considered to
be imports and to fall within the scope of VAT with certain exceptions (i.e., entry of goods under a qualifying
customs duty suspension procedure).
Export of goods
Goods sold outside the Community (A Romanian company sells merchandise to a Turkish client)
Intra-Community acquisition of goods
Intra-Community acquisition of goods means acquisition of the right to dispose as owner of movable
tangible property dispatched or transported to the destination indicated by or on behalf of the purchaser or the
supplier to Romania from another EU member state from which the goods are dispatched or transported.
Reverse-charge VAT
In case of taxable intra-Community acquisitions, certain acquisitions of goods/services and imports (if the
postponement certificate is obtained by the taxable persons registered for VAT purposes performing such
operations), for which the place of supply is deemed to be in Romania
The beneficiaries have to recognize the related collectible VAT in their return of the respective month. The
deductible VAT can, as a general rule, be recovered in the same VAT return to the extent of the beneficiarys
right to deduct VAT.

SIMPLIFIED RECORDING OF VAT

- for certain supplies (e.g., cereal and technical plants, waste and scrap materials, wooden material, transfer of
greenhouse gas emissions certificates, supply of electric energy to a taxable trader etc.), a simplified VAT
mechanism is applicable
- both the seller and the purchaser are registered as VAT payers
- the purchaser has to simultaneously recognize the related VAT both as a collectible and deductible VAT in
the return of the respective month, without any cash flow implications (provided the purchaser has a full
right to deduct VAT).

ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA

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).

THE CHARGEABLE EVENT AND THE CHARGEABILITY

The chargeable event - at the date of the delivery of goods or providing the services.
The chargeability appears when the chargeable event takes place.
Exceptions:
- on invoice issue, prior to the occurrence of the chargeable event;
- upon collection of the upfront payment, for advance payments made prior to the occurrence of the
chargeable event
- VAT cash system
The chargeability for the intra-community supplies VAT exempt and for intra-community acquisitions
appears when the invoice is issued for the whole value of the goods, but not more than the 15th day of the next
month to the one when the chargeable event appeared.
The chargeability for the import of goods appears when the custom taxes are computed, or, if they are
exempt, at the date when they should be taxed. In the case of special customs regimes, the chargeability appears
when they stop being places in such regimes.
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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
Member state
Intra-community supply -VAT exempt
Delivery date: 29/06/2016
Invoice date: 20/07/2016
Chargeable event : 29/06/2016
Chargeability date: 15/07/16
The supply is included in the recapitulative
statement for the 3rd quarter of 2016.
Member state
Intra-community supply -VAT exempt
Delivery date: 29/06/2016
Invoice date: 29/06/2016
Chargeable event : 29/06/2016
Chargeability date: 29/06/2016
The supply is included in the recapitulative
statement for the 2nd quarter of 2016.

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.

THE VAT CASH-IN SYSTEM (OPTIONAL)

In the case of:
taxable persons
established for VAT purposes in Romania (according to art. 316 153)
having the seat of business in Romania
turnover in the previous calendar year does not exceed Lei 2,250,000
Rule:
The VAT cash-in system is applied as of the first day of the second tax period of the year following that for
which the option was made.
Exception:
-the taxable person is automatically registered with the Register of taxable persons applying the VAT cash-in
system and who applies the system as of the date recorded in the decision for registration
The right to deduct VAT
Supplier

Beneficiary (Client)

Chargeability

applies the system

doesnt apply the system

applies the system

applies the system

at invoice payment
at invoice payment

applies the system

doesnt apply the system

doesnt apply the system

doesnt apply the system

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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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
Beneficiary (Client)
Acquisition
301 = 401
4428

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.

CREDIT FOR VAT DEDUCTIBLE (INPUT VAT)

General rule
Carrying out taxable supplies allows offsetting VAT collectable (output VAT) against VAT deductible (input
VAT).
Exempt supplies do not allow the recovery of VAT deductible, except in the case of VAT exempt supplies with
credit, for which VAT deductible can be recovered.
Companies performing a combination of taxable and exempt supplies generally have the right to recover the
VAT deductible on a pro rata basis.
VAT pro rata = (Taxable supplies + Exempt supplies with credit for deductible tax) * 100
/ Total supplies
The VAT deductible not recovered would generally represent a cost.
Pro rata temporarily applicable for a year is either the final pro rata determined for the previous year or the
pro rata estimated based on the transactions forecasted to be carried out during the current calendar year in case
of taxable persons whose ratio of transactions entitling to VAT deduction of all transactions changes in the
current year compared to the previous one.
The final pro rata shall be determined on an annual basis.
The final pro rata shall be determined as a percentage and shall be rounded off to the units immediately
thereafter.
A document showing the computation method of the final pro rata shall be attached to the VAT return.
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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA

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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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
The Romanian authorities will accept documents or messages, both electronic and hard copy versions, if these
meet the requirements provided by Romanian Fiscal Code in respect of form and content of invoices. Moreover,
any document that specifically and without any ambiguities modifies or refers to an initial invoice will be
considered as invoice.
Taxable persons supplying goods or services with certain exceptions should issue invoices by the 15th of the
month following the one in which the chargeable event occurs unless the invoice has already been issued.
Intra-Community supply
Intra-Community acquisition
Supplier (RO)
Client (FR)
1. The supplier is a VAT payer: exempt operation
1. The client is a VAT payer: reverse charge
Company A from Romania sells to company B from
France merchandise of 5.000 EUR.
Client (B) communicates the VAT code to A.
Sale
4111B = 707 5.000 EUR

2. The supplier is a VAT payer:

It issues the invoice with VAT from Romania (20%).
4111B = 707 5.000 EUR
4427 5.000 * 20%
3. The supplier is a VAT payer: exempt operation
4111B = 707 5.000 EUR

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.

*The limit for the distance sales differs between the

member states. It ranges between 35.000- 100.000 EUR. It
is computed for each member state, depending of the value

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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
of all sales to that state.

4.b. The client is not a taxable person, but Its total

acquisitions are more than 10.000 EUR (the limit set
by France) or it chose to be registered as VAT payer
in France for intra-community acquisitions according
to art. 317 1531. It transmits its VAT code to the
supplier:
The supplier has an exempt intra-community supply, It realizes a taxable intra-community acquisition in
because the customer transmits its VAT code from France and pays the VAT through the special
France.
statement
371 = 401A 5.000 EUR
4111B = 707 5.000 EUR
371 = 4423 5.000 * 19,5%
5. The supplier is a VAT payer and has distance sales 5.a. The client is not a VAT payer, taxable person,
more than 35.000 EUR*:
and its total acquisitions are less than 10.000 EUR:
It registers in the destination member state and ha a It has no deduction right.
local supply in France.
Transfer Local supply
Place of transfer: France (place where the transport is 371 = 401A 5.000 + 5.000 * 19,5%
ended)
(Pays VAT to the supplier)
4111B = 707 40.000
4427 40.000 * 19,5%
5.b. The client is not a taxable person, but its total
acquisitions are more than 10.000 EUR (the limit set
The supplier doesnt have to register as a VAT payer by France) or it chose to be registered as VAT payer
in France
in France for intra-community acquisitions according
to art. 317 1531:
It declares the intra-community acquisition in France
and pays the VAT through the special statement.

4111B = 707 5.000 EUR

371 = 401A 5.000

371 = 4423 5.000 * 19,5%

THE IMPORT
1. Import of common goods:
- payment of VAT in the customs: 4426 = 5121

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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
Example of import followed by a local delivery
A Romanian company B buys goods worth EUR 15,000 from a Canadian company A. B is normally
registered for VAT purposes puts the goods in free circulation and acts as the importer in terms of VAT. The
goods will be resold to a Romanian company C at the price of EUR 20,000. A transports the goods from
Canada directly to C.
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
There is no exempt.
The person obliged to pay VAT is the importer B.
371 = 401A 15.000 EUR
4426 = 5121 3.000 EUR (20%)
II. The local delivery
The taxable person is B.
The transaction is taxable supply of goods
The place of supply is Romania, the member state where the import takes place.
There is no exempt.
The person obliged to pay VAT is the B, who has a local delivery with Romanian VAT.
4111C = 707 20.000
4427 4.000 (20% * 20.000)
2. Import of goods in customs suspension *
During the suspension preservation: exempt
At the exit from customs suspension: taxable
3. Import followed by an intra-community supply
- exempt
Example:
A Romanian company B buys goods worth EUR 15,000 from a Canadian company A. B is normally
registered for VAT purposes puts the goods in free circulation and acts as the importer in terms of VAT. The
goods will be resold to a Greek company C that communicates its VAT code, at the price of EUR 20,000.
Company A transports the goods from Canada directly to C.

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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA

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.

TRANSFER / NON TRANSFER

A
Romnia

A
Italy

Transfer: the movement of goods from A from RO to A in IT for immediate delivery.

Non-transfer: the movement of goods from A from RO to A in IT for their storage for an undetermined period
in order to be sold.
Example: A Romanian company sends construction materials and equipment for building a construction in
Italy.
The movement of the materials is a transfer, because they are going to be consumed and invoiced (are included
in the cost of the work) locally in the other state.
The transfer is self-invoiced.
The movement of the equipment is a non-transfer, because it will return in Romania. If it would be sold in Italy,
at the sale date the non-transfer would turn to transfer followed by a local delivery.
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ADVANCED ACCOUNTING AND BUSINESS TAXATION

PhD Associate Professor ADRIANA FLORINA POPA
Non-transfer: the movement of goods in order to be repaired.

PAYMENT AND FILING REQUIREMENTS

Taxpayers must complete a VAT return (300) with the tax authorities and pay VAT on a monthly basis,
specifying the taxable amount and the tax due.
In case of taxpayers whose annual turnover is less than EUR 100,000, the VAT return (300) should be filed
with the tax authorities on a quarterly basis. The tax return must be filed and the respective VAT paid by the
25th of the following month.
Taxpayers registered for value added tax purposes according to art. 317 1531 - VAT return (301).
A VAT recapitulative return (390) should be filed with the tax authorities on a quarterly basis. Such
returns should comprise the following information: total amount of intra-Community supplies exempt from
VAT, total amount of intra-Community acquisitions for which the beneficiary is obliged to pay VAT, and
operations within the triangulation scheme.
Taxable persons registered for VAT purposes in Romania should submit a VAT return (394) including all
supplies/acquisitions of goods/services taking place in Romania - all invoices (including invoices for
advance payments) issued during the reporting period for taxable supplies subject to standard or reduced
VAT rate and should be submitted on the same basis as VAT return 300;
Companies registered for VAT purposes in Romania, having deliveries of goods to/arrivals of goods from
other EU member states which exceed an annual amount of RON 900,000/RON 500,000 are obliged to
submit INTRASTAT declarations on a monthly basis.
Register of intra-Community trade operators - all taxable persons and non-taxable legal persons that
carry out intra-Community transactions, namely:
- intra-Community supplies of goods having the place in Romania
- subsequent supplies of goods carried out under a triangular transaction
- intra-Community supplies of services
- intra-Community acquisitions of taxable goods having the place in Romania
- intra-Community acquisitions of services
Persons registered for VAT purposes according to art. 316 and 317 153 and 1531 shall apply for entry in the
Register of intra-Community trade operators if they intend to perform one or more intra-Community
transactions, before the starting them.

Useful links
www.anaf.ro
VAT Information Exchange System - V.I.E.S.
Sistemul M1SS

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