Government Ordinance no. 28/2013 regarding the amendment of Law 571/2003 regarding the Fiscal code (“GO 28/2013”), published in the Official Gazette of Romania no. 553 of 30 August 2013 brings several significant amendments to the Fiscal code.
The legal framework for applying the VAT reverse charge mechanism on supplies of electricity is substantially amended as follows:
1. The trader who acquires electricity must be a taxable person, established for VAT purposes in Romania and its own consumption must be negligible i.e. it must not exceed 1% of the total volume of electricity it has acquired during January – November of each calendar year;
2. For the purposes of applying the VAT reverse charge mechanism, a trader is any taxable person which is licensed by ANRE as a power market operator for the day ahead and intraday markets.
3. A trader is also a taxable person which cumulatively meets the following conditions:
a. It holds a license issued by ANRE for the supply of electricity;
b. Its main activity with regard to the acquisitions of electricity is the resale of the respective electricity while its own consumption is negligible (below the 1% threshold). The taxable person must submit to the competent tax authority, by 10 December of each year, an affidavit showing that it fulfils this condition. The list of these traders will be published on ANAF’s website.
4. The Ordinance also regulates the situation when the trader obtains its license during the year as well as the transitory regime for 2013.
Other amendments brought by GO 28 /2013 refer to the following points:
· Engines with power exceeding 100HP, used for yachts and other pleasure craft will now be subject to non-harmonised excise duties;
· Clarifications are brought regarding the chargeability and payment terms for non-harmonised excise duties.
Theodor Artenie, Managing Director Tax
Oana Manuceanu, Managing Director Tax
Mihaela Popescu, Managing Director Tax