Change of VAT in Romania, 19% - 24%

We would like to inform you, that the standard VAT rate shall increase to 24% from the previously 19%. No changes are applicable to the provisions of the special rates of VAT (9%, 5%).

The change shall come in force 1st July 2010.

 

Please be informed, that also other changes appeared in the Fiscal regulations, we would like to mention few of them.

1. Register of intra – community operations

Companies are required to obtain until 1st August 2010 the registration as intra-community operator (valid VAT number is no longer enough) in order to perform further acquisitions/dispatches of goods/services. Performing intra-community operations after 1st August 2010 without this registration shall be penalized by 1000 RON up to 5000 RON.

Registration is based on submitting a request form 095 along with criminal records for all associates and administrators. Based on this documentation, the fiscal authority will decide and then officially communicates the registration.

We will provide these registrations as well as obtain the criminal records for you, so in case your company needs the registration, please feel free to contact our colleague:

Mrs. Nicoleta Firita

nicoleta.firita@accace.eu

 

2. Independent activities

Independent activities regularly performed by a person can be reconsidered as a dependent activity (PFA). Both the payer and the beneficiary of dependent activities are therefore required to compute and pay social contributions along with revenue tax (similar to employees’ treatment).

Conditions for reconsidering an independent activity if:

- revenue beneficiary uses the partner equipment;

- revenue beneficiary is subordinated to the payer and has to fulfill his requirements regarding his obligations, schedule and place of activity;

- revenue beneficiary uses only his physical and intellectual capacity, and none of his own belongings;

- revenue payer carries the travel costs of the performer;

- revenue payer pays vacation or sick leave of the performer.

 

3. Salary benefits

Gift – tickets, holiday-tickets, nursery-tickets, compensatory salaries will now be treated as salary advantages and included in the payroll taxable income.

Meal – tickets will be now charged by 16% income tax (no social contributions added).

30.6.2010
 
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