Holidays bring in further tax amendments

Probably, one of the long-awaited changes of this summer is the establishment of the 9% – rated VAT on bread and some bakery products, as well as on various types of flour, wheat and rye.  New categories of excusable commodities are introduced.

In addition, Form no. 630 is presented, which contains Annual Tax Decision regarding the determination of the social health insurance contribution.

The Official Gazette no. 490 of 2 August 2013 has published the Government Ordinance no. 16/30 July 2013 which amends and supplements the Law no. 571/2003, regarding the Tax Code, and regulates tax and budget-related measures.

Some of the major amendments to the Tax Code, as provided by this Ordinance, refer to the following:

Title I – General Provisions

– Clarification on the right of taxpayers having been declared inactive or having their VAT number annulled to deduct the VAT related to acquisitions of goods and/or services made in the period in which such persons have not had a valid VAT number but have performed operations generating the right of deduction;
– New exception regarding acquisitions for which the deduction of related expenses and VAT is allowed in the case of beneficiaries acquiring goods and/or services from taxpayers having been declared inactive or having their VAT number annulled and benefiting from no right to deduct the expenses and the VAT related to such acquisitions.

Title II – Profit Tax, Title V – Tax on the Income Obtained from Romania by Non-resident Entities and Tax on Foreign Entities’ Representative Offices in Romania

–  Introduction of further amendments following the admission of Croatia to the European Union starting 1 July 2013

Title VI – Value Added Tax

– Lower VAT rate, i.e. 9%, applied to deliveries of bread and some bakery products, as well as to certain types of flour, wheat and rye, in effect as of 1 September 2013;
– New provisions regarding the annulment of registration for VAT purposes of companies, and their possibility to request their reregistration for VAT purposes;
– Amendment of the provisions concerning the reregistration of taxable persons for VAT purposes;
– Clarification on the VAT registration annulment date referred to in the decision thereon and the date on which the annulment of registration becomes effective for the supplier / provider / beneficiary;
– New provisions regarding registration / annulment of registration for VAT purposes as a result of errors;
– New provisions regarding electronic invoice storage;
– New operations, such as electricity supplies and green certificates trading, to which simplified measures are applied – in effect as of 1 September 2013;
– The provisions referring to simplified measures in the case of supply of cereals, technical plants and electricity, and of green certificates trading shall be in force until 31 December 2018.

Title VII – Excise Duties and Other Special Taxes – the new provisions shall come into force starting 1 September 2013

– Change in the percentage of the guarantee provided by the registered forwarding agent for the movement of excise goods in duty suspension;
– New provisions regarding colour marking of waste oils collected by authorised economic operators, used  for heating;
– Introduction of new categories of excisable goods, such as: gold- and/or platinum-made jewelry, excepting wedding rings,  natural fur coats, yachts, other ships and boats with or without engine, hunting weapons, etc.; clarification on the calculation and payment of the excise tax applied to the aforesaid goods as well as to coffee products;
– New provisions concerning the payers of excise duties on the new categories of excisable goods and on coffee products;
– Clarification on the excisable goods withdrawn from the market in relation to which the paid excise taxes are refunded upon economic operator’s request;
– Introduction of provisions regarding the occurrence of the chargeable event in the case of yachts and of the automobiles falling within the category of excisable products;
– Change in the level of the excise duty applicable to ethylic alcohol.

Title IX2 – Mandatory Social Contributions

– Clarification on the declaration of personal social security contributions and on the calculation base for payment of social contributions in the case of persons obtaining income, on which withholding tax should be paid, from activities such as those stipulated by Art. 52 (1) of the Tax Code (e.g. income from intellectual property rights, activities performed under civil contracts and from accounting advisory services), as well as in the case of the persons achieving income from associations without legal personality, as provided under Art. 13 (e) of the Tax Code.

The above-referenced Ordinance also amends Government Ordinance no. 64/2001, regarding the distribution of profit to national companies and companies the share capital of which is owned, either in full or in part, by the State, as well as to public corporations (i.e. régie autonomes). This Ordinance also amends Government Emergency Ordinance no. 9/2013, regarding the environmental stamp for vehicles.

Apart from the provisions mentioned herein as coming into force on 1 September 2013, all the other provisions referred to in this Newsletter will become effective three (3) days after the date of their publication in Monitorul Oficial.

Monitorul Oficial al Romaniei no. 485/2 August 2013 has published Order no. 938/19 July 2013 of the President of the National Tax Administration Agency, approving Form no. 630, i.e. Annual Tax Decision regarding the determination of the social health insurance contribution.

The aforesaid Order approves Form 630 which contains the Annual Tax Decision, regarding determination of the social health insurance contribution, and the annex thereto comprising a statement regarding determination of the monthly amount of social health insurance contribution. The Form is used for the establishment of annual payment obligations related to the social health insurance contribution and for the adjustment of prepayments. Such Form shall be used to determine social health insurance contributions starting the tax year 2012.

TAX ALERT by Mazars Consulting / MAZARS ROMANIA

* Note: You may find Romanian, German and French versions of the newsletter in Mazars’ archive

* TAX ALERT contains a selection of the latest major issues occurred in the Romanian legislative framework, is intended only to provide information and, hence, shall not be deemed to provide professional advice or consultancy.  Therefore, we assume no responsibility in this respect.

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