On September 19, 2023, the Government published in decisional transparency a draft law on some fiscal and budgetary measures to ensure Romania’s long-term financial sustainability. On September 26, the Government assumed responsibility in Parliament for this bill. No motion of censure was filed against the Government as a result of the accountability procedure, but the Constitutional Court was notified of the possible unconstitutionality of some provisions. The Constitutional Court announced that the analysis on the possible unconstitutionality of the law on fiscal budgetary measures will take place on October 18.
Some measures are foreseen to apply from the 1st of the month following entry into force, but the vast majority from 1 January 2024. We have summarized below the 10 most impactful fiscal measures proposed.
1.Introducing a minimum corporate turnover tax for companies with a turnover higher than EUR 50 million and an additional tax for banks, respectively a special turnover tax for the oil and gas sector, starting with 2024 or with the amended fiscal year starting in 2024
Companies which, at the end of 2023, will have a turnover above EUR 50 million, at the exchange rate valid at the end of the financial year in which the revenues were accrued, owe, from 1 January 2024 or the amended tax year starting in 2024, a corporate tax which may not be lower than the minimum turnover tax (‘IMCA’), calculated as 1% of total revenue, less:
- non-taxable income,
- income from subsidies,
- income from compensation from insurance companies,
- revenue from excise duties which have been reflected simultaneously in the expense accounts,
- income from inventories, or services, or fixed assets in progress,
- value of fixed assets in progress as of 2024/ first day of amended fiscal year beginning in 2024 and accounting depreciation at the level of historical cost of assets produced/acquired as of 2024/ first day of amended fiscal year beginning in 2024.
IMCA is also due by companies that exceed the minimum turnover threshold mentioned above and that register tax loss in the year, or as a result of recovering the tax losses carried forward.
Basically, at the quarterly / annual payment terms of the corporate income tax, IMCA is compared with the profit tax calculated by multiplying the taxable profit (from which any tax loss carried forward is subtracted) by 16%, from which the following are deducted:
- Tax credit in the form of sponsorships
- Other amounts deducted from corporate income tax
- Reduction of corporate income tax for capital increases (GEO 153/2020).
The following are not deducted from the corporate income tax, for comparison with IMCA:
- Foreign tax credit
- Reinvested profit, tax exempt according to art. 22 of the Tax Code
- Corporate income tax exempt under the Agricultural Cooperative Act.
If, following the comparison of corporate income tax with IMCA, it appears that the corporate income tax is due at the level of the IMCA, the following cannot be further subtracted from IMCA:
- Reinvested profit, tax exempt according to art. 22 of the Tax Code
- Corporate income tax reduction for capital increases (GEO 153/2020),
but subtraction is allowed for:
- Tax credit in the form of sponsorships, within the minimum value between 0.75% of turnover and 20% of the corporate tax due.
The introduction of IMCA poses some economic and fiscal problems:
- IMCA will be calculated by applying 1% on revenues exceeding turnover (e.g., income from exchange rate differences, income from sales of assets, etc.).
- IMCA will be calculated by all economic agents in the logistics chain (manufacturer, distributor, retailer, etc.), exceeding the turnover of EUR 50 million, without any deduction for the IMCA paid on the previous levels of the logistics chain, the tax paid leading, in the end, to the increase in the price to final consumers.
- IMCA will make Romanian groups of companies with more than one entity with a turnover of more than EUR 50 million pay, potentially, IMCA, for intra-group transactions.
- IMCA will make the tax exemption for reinvested profit, respectively the tax reduction for capital increases, inapplicable in certain situations.
- IMCA makes the tax losses no longer lead to zero corporate tax.
- The foreign tax credit, respectively the tax paid abroad, either directly (profit tax for permanent establishments abroad), or indirectly (withholding tax), will be deducted from IMCA, but the interaction between IMCA and double taxation treaties remains uncertain.
- Although the draft law stipulates that the value of investments in assets, made starting with 2024, and their depreciation starting with 2024 will be subtracted from the computation base of IMCA, the assets taken into account and the date of their entry into patrimony for determining indicators I and A will be established by order of the Minister of Finance, and the selection of categories of eligible assets is made based on criteria related to the nature of the activity carried out, which raises a big question mark as to what investments will ultimately be subtracted from the IMCA computation formula. The depreciation to be deducted from the IMCA computation base is only the depreciation calculated at historical cost (without the influence of future revaluations).
Tax groups applying the calculation and consolidated payment of corporate income tax will compare the profit tax due by the tax group with the sum of the IMCA calculated at the level of each member of the tax group.
The provisions on IMCA do not apply to economic operators carrying out exclusively activities of distribution/supply/transmission of electricity and natural gas and which are regulated/licensed by the National Energy Regulatory Authority.
The provisions on IMCA described above do not apply to credit institutions – Romanian legal entities and branches in Romania of credit institutions – foreign legal entities. In addition to corporate income tax, they owe a turnover tax calculated by applying a rate of 2% (from 2024 to 2025) and 1% (from 1 January 2026) on turnover. The additional tax represents income to the state budget and is administered by ANAF.
By exception to the provisions on IMCA, legal entities carrying out activities in the oil and gas sectors, established by order of the Minister of Finance, which registered a turnover of over EUR 50,000,000 in the previous year, owe between 2024 and 2025 (or the amended fiscal year starting in 2024 – the fiscal year ending in 2026), in addition to the corporate income tax, a specific turnover tax (ICAS). Starting January 1, 2026/amended fiscal year starting in 2026, taxpayers in the oil and gas sectors will apply IMCA provisions instead of ICAS.
The taxpayers carrying out activities in the oil and natural gas sectors and activities of distribution/supply/transmission of electricity and natural gas and which are regulated/licensed by ANRE, do not include in the computation formula of IMCA, the elements (VT, Vs, I, A) related to the distribution/supply/transmission of electricity and natural gas activities.
2.Differentiated income tax rates for micro-enterprises, starting with 2024
Starting with 2024, the microenterprise income tax rates will be:
- 1%, for micro-enterprises that achieve revenues not exceeding EUR 60,000 inclusive and that do not carry out the activities for which, regardless of whether the ceiling of EUR 60,000 is reached or not, tax of 3% of revenues is due.
- 3 % for micro-enterprises which:
- earns between €60,000 and €500,000 per year; or
- carries out activities, main or secondary, corresponding to NACE codes: 5821 – Computer game publishing activities, 5829 – Publishing activities of other software products, 6201 – Custom software development activities (customer-oriented software), 6209 – Other information technology service activities, 5510 – Hotels and similar accommodation facilities, 5520 – Holiday and short-stay accommodation facilities, 5530 – Caravan parks, campsites and campsites, 5590 – Other accommodation services, 5610 – Restaurants, 5621 – Event catering activities, 5629 – Other food services n.e.c., 5630 – Bars and other beverage serving activities, 6910 – Legal activities – only for professional companies with legal personality, established by lawyers according to law, 8621 – General nursing activities, 8622 – Specialized nursing activities, 8623 – Dental care activities, 8690 – Other activities relating to human health.”
If, during the fiscal year, the revenues of a micro-enterprise exceed the level of EUR 60,000, or the micro-enterprise starts to carry out the activities provided for the 3% tax rate, starting with the quarter in which such situations occur, the 3% tax rate is applicable.
If, during the fiscal year, a micro-enterprise no longer carries out activities subject to the 3% rate and revenues do not exceed EUR 60,000, starting with the quarter in which such situations occur, the 1% rate is applicable.
If Romanian legal entities, carrying out activities corresponding to NACE codes for which the 3% rate applies, obtain income from activities other than those corresponding to these NACE codes, the 3% tax rate also applies to income from these other activities.
We welcome the abandonment of some measures that would have greatly increased the tax burden on micro-enterprises, such as:
- The obligation of micro-enterprises with a turnover higher than EUR 60,000 and profitability over 30% to pay corporate tax, a measure that would have strongly penalized companies in the services sector, where the added value is high and purchases for carrying out the activity very low,
- Impossibility to apply tax credit for sponsorship (expression of CSR policy) or tax reduction for capital increases (which incentivizes the maintenance of profits for growth and reinvestment, instead of immediate distribution to dividends),
- Introduction of advance payment of tax for the fourth quarter, until December 25 of the current year.
3.Reducing and aligning tax incentives for the IT, construction, agriculture and food industry sectors, starting with the revenues of the month following that in which the law enters into force
Starting with the salary income of the month following that in which the law will enter into force, it is desired to align the tax incentives granted to employees in the IT industries (computer program creation activity), construction, food industry and agriculture, for which the following tax incentives will apply:
- Tax exemption on salary income, until December 31, 2028, for gross monthly incomes up to and including RON 10,000, at the main of work. The part of the gross monthly income exceeding 10,000 lei does not benefit from tax incentives.
- For the IT sector, the tax incentive applies to income obtained from salaries and assimilated to wages earned by the individual based on an individual employment contract, act of delegation or secondment or a special status provided by law, as the case may be. For the construction, agriculture and food industry sector, the tax incentive applies to gross monthly income from salaries and assimilated to wages earned by the individual under an individual employment contract, full-time or part-time, as the case may be, calculated at a gross employment salary for 8 hours of work / day by reference to the minimum gross national wage guaranteed in payment for the relevant sector. The provision applies until 31 December 2028.
- Reducing the social security contribution rate (25%) by the percentage points corresponding to the contribution rate to the privately managed pension fund (3.75%) provided for in Law no. 411/2004 on privately managed pension funds. The provision applies until 31 December 2028. The affected employees can opt to pay the contribution to the privately administered pension fund.
Thus, the bill would repeal the following provisions:
- Tax exemption on salary income for the activity of creating computer programs (which remains valid only for gross salary income up to 10,000 lei / month).
- Exemption from health insurance contribution for employees in the construction, agricultural and food industry sectors.
- Exemption from the payment of social security contributions due by the employer for special or other working conditions, for employers in the construction, agricultural and food industry sectors.
- Reducing the share of the insurance contribution for work due by the employers to the level of the share that is made income to the Guarantee Fund for the payment of salary receivables (provision which de facto did not apply because a State aid scheme was never approved for this purpose).
- The possibility to apply tax incentives for income from several employers at the same time.
4.Change in the tax treatment of vouchers and other salary advantages, starting with January 2024 income
It is desired that the value of meal vouchers and holiday vouchers granted according to the law be subject to 10% health insurance contribution (“CASS”). The non-inclusion in the social charges (“CAS”) calculation base of tickets in the form of meal vouchers, holiday vouchers, nursery vouchers, cultural vouchers, granted according to the law is maintained. This new treatment would apply from January 2024 earnings onwards.
At the same time, it is desired to maintain as non-taxable salary income, also exempted from the payment of social contributions, within the limit of 33% of the gross basic salary, the 8 types of income with the same treatment as defined by GO 16/2022, but, in order to avoid any confusion, it is specified that the provisions on tax exemption and social contributions exemption for payments for holiday expenses are not applicable to employees who benefit from holiday vouchers, in accordance with current legislation.
The Government renounced to extend the same tax treatment for the equivalent in lei of meal vouchers, granted within the same limits and conditions as the meal vouchers, as well as with the same destinations as those provided by law for them, granted by employers to employees who do not benefit from such meal vouchers.
5.Amendment of the tax regime of PFA (income from independent activities), starting with the income of 2024
Income from self-employment includes income from production, trade, provision of services and income from liberal professions, earned individually and/or in a form of association, including related activities. Income from liberal professions are revenues obtained from the provision of professional services, according to special normative acts regulating the organization and exercise of the respective profession.
The draft law comes with a set of new rules for calculating and paying the health insurance contribution (CASS) for income from independent activities, according to which individuals who earn income from independent activities, from one or more sources, owe CASS at an annual calculation base equal to the annual realized / gross or net income or annual income norm, or the adjusted annual income norm.
The maximum limit of the CASS calculation base is the level of 60 gross minimum wages per country in force at the deadline for submitting the single annual declaration on estimated income (i.e. May 25 of the current year).
A special form of income from independent activities is represented by incomes obtained under sports activity contracts, for which the draft law stipulates that income payers will calculate and withhold CASS due by the income beneficiary, at the time of income payment, by applying the 10% rate on the calculation base (i.e., gross income). The income payer submits the 112 tax return and pays the contribution by the 25th day inclusive of the month following that in which it was withheld.
If the calculation base (i.e., the annual realised/gross or net income or the annual income norm, respectively the adjusted annual income norm, as the case may be), cumulated from one or more sources of income from self-employment (including sports activity contracts), corresponding to the estimated/realized income or for which withholding tax was applied during the year, where applicable, is lower than that corresponding to a calculation base equal to the level of 6 gross minimum wages per country in force at the deadline for submitting the annual declaration on estimated income, individuals owe a difference in CASS up to the level corresponding to the calculation base equal to 6 gross minimum wages per country effective at the deadline for filing the estimated annual income statement. This difference will be declared by the single annual declaration, by 25 May inclusive of the year following that of income realisation.
Also through this declaration, CASS will be regularized for payments over 60 gross minimum wages, which could be withheld at source to beneficiaries of income from sports activity contracts, individuals being entitled to claim CASS paid over the maximum ceiling for reimbursement or compensation.
The calculation base for income tax for income from self-employment for which the annual net income is determined in real system, based on accounting data, will be calculated by deducting from gross income the CASS due according to the new rules, except for the difference in CASS up to the level corresponding to the calculation base equal to 6 gross minimum wages per country.
CASS is also deducted from the tax calculation base on income from sports activity contracts.
The difference in CASS up to the level corresponding to the calculation base equal to 6 gross minimum wages per country would not be due in the following situations:
- in the previous fiscal year, the individual earned income from salaries and similar to wages at a level at least equal to 6 gross minimum wages per country, in force during the period in which the income was obtained; or
- In the previous fiscal year, the individual earned income from those provided for in art. 155 para. (1) letters c) – h) (i.e., income from intellectual property rights, income from an association with a legal person, income from the disposal of the use of goods, income from agricultural activities, forestry and fisheries, income from investments and income from other sources), for which they owe the health insurance contribution at a level at least equal to 6 gross minimum wages per country, effective at the deadline for filing the annual statement of estimated income.
- In the previous year, individuals fell into the categories of persons exempted from the payment of the social health insurance contribution provided for in art. 154 para. (1) letters a) to c) and e) to g) of the Tax Code.
The amendments aim to restrict as much as possible the differences between the tax regime of income from independent activities and the tax regime of income from salaries, despite that the legal form of obtaining the 2 types of income imposes substantially different rights and risks for the income beneficiary.
If adopted in this form, the PFA tax regime will be especially suitable for Romanians who will want to work on a project basis, in addition to their full-time jobs, given that, from 2023, part-time employment contracts are overtaxed (measure which was introduced with the approval of GO 16/2022). However, for Romanians with a small business, who have chosen PFA, II, etc. as a form of organization, this regime will become very burdensome, through a substantially increased tax burden (CASS at a maximum of 60 minimum wages, compared to CASS at a maximum of 24 minimum wages).
6.Other changes to taxation of individuals
In the case of income from intellectual property rights for which the annual net income is determined in real system, based on single-entry accounting data, the net annual taxable income will be determined by deducting from the recalculated annual net income the social security contribution (CAS) corresponding to that income.
Thus, in order to establish the net annual taxable income for income from self-employment and intellectual property rights, the deductible CAS level will be established proportionally to the share of the annual net income determined in the real system in the total annual basis for calculating the social security contribution.
CASS for income from intellectual property rights, from association with a legal person, from the disposal of the use of goods, from agricultural activities, forestry and fisheries, from investments or from other sources remains due at the existing ceilings (6, 12 or 24 gross minimum wages per country), if the cumulative income is at least equal to 6 gross minimum wages per country, However, income from self-employment, for which different rules will apply, disappears from the calculation of the ceiling (see point 5 above).
Any income found by the tax authorities, under the conditions of the Fiscal Procedure Code, whose source has not been identified, is imposed with a rate of 70% applied to the adjusted taxable base. Through the tax decision, the tax authorities will establish the amount of tax and accessories. This provision shall apply from 1 July 2024.
7.Change of VAT rates, starting with 1 January 2024
The draft law proposes the limitation of the application of the reduced VAT rates (5%, 9%), by switching some products / services from the 5% rate to the applicable rate of 9%, respectively the transition from the 9% rate to the applicable rate of 19%.
The reduced VAT rate of 5% is maintained for:
- supply of school textbooks, books, newspapers and magazines, on physical and/or electronic media, except those wholly or predominantly containing video or audio music content and those intended solely or mainly for advertising,
- services consisting in giving access to castles, museums, memorial houses, historical monuments, architectural and archaeological monuments, zoos and botanical gardens
- delivery of firewood to individuals and to legal entities or other entities, regardless of their legal form of organization, including schools, hospitals, medical dispensaries and social assistance units
- delivery of thermal energy in the cold season to the population, public and private hospitals, NGOs, accredited public and private social service providers providing social services.
It is proposed to replace the 5% VAT rate with the 9% VAT rate for:
- delivery of social housing, with a transitional period of 1 year (2024), during which individuals who paid in advance for a dwelling with a value below RON 600,000 in 2023 can still purchase that dwelling with the reduced rate of 5%.
- delivery and installation of photovoltaic panels, solar thermal panels, heat pumps and other high-efficiency heating systems, including installation kits, as well as all necessary components purchased separately, intended for homes, central or local public administration buildings, buildings of entities under their coordination/subordination, except for companies, as well as:
- delivery and installation of components for the repair and/or extension of these systems.
- delivery of the above systems as part of construction deliveries, as well as delivery and installation of the above systems, as extra options when delivering a construction, for the recipients provided above.
- services consisting in giving access to fairs, amusement parks and recreational parks whose activities are classified under NACE codes 9321 and 9329, fairs, exhibitions, cinemas and cultural events, other than those exempt.
- services consisting in allowing access to sporting events.
The 9% VAT rate shall continue to apply to:
- supply of the following goods: foodstuffs, including beverages, intended for human and animal consumption, live animals and poultry of domestic species, seeds, plants and ingredients used in the preparation of foodstuffs, products used to supplement or replace foodstuffs, the CN codes of which shall be laid down in the detailed rules, except:
- alcoholic beverages;
- non-alcoholic beverages falling within CN code 2202;
- foods with added sugar whose total sugar content is not less than 10 g/100g product, other than Easter bread and biscuits;
- restaurant and catering services, excluding alcoholic beverages and non-alcoholic beverages falling within CN code 2202,
but it is proposed to move from applying the reduced VAT rate of 9% to applying the standard VAT rate for:
- delivery of foods containing added sugar with a total sugar content of not less than 10 g/100g product, other than Easter bread (in Romanian “cozonac”) and biscuits,
- supply of non-alcoholic beverages falling within CN code 2202 99
- restaurant and catering services for non-alcoholic beverages falling within CN code 2202 99.
For the other transactions it is proposed to apply the 19% standard VAT rate.
The draft law also proposes to revise the meaning of the expression “dwellings that at the time of delivery can be inhabited as such”, in order to introduce conditions regarding the degree of finishing of dwellings and the necessary facilities. This measure aims to achieve the following objectives:
- establishing a degree of finishing/equipping of dwellings to ensure that reduced VAT will be applied only to those dwellings that can actually be inhabited by beneficiaries without requiring significant additional investments;
- avoiding the non-unitary application of the reduced VAT rate and the uncertainty of suppliers regarding the correct VAT rate, by expressly detailing at the level of the law the finishes / facilities necessary to apply the reduced VAT rate.
The reduced VAT rate of 5% applies only to dwellings that at the time of supply can be inhabited as such, according to the legal conditions in force on the date of conclusion of legal acts between humans having as object the advance payment for the purchase of such housing.
It is also proposed to eliminate the VAT exemption with deduction right applicable to services of construction, rehabilitation, modernization of hospital units and of the exemption for supplies of medical equipment, appliances, devices, articles, accessories and protective equipment, materials and consumables for sanitary use, normally intended for use in health care or for use by disabled people, goods essential for compensating and overcoming disabilities, as well as the adaptation, repair, rental and leasing of such goods, if the delivery or provision takes place to state hospital units.
The changes are proposed to apply from 1 January 2024.
From 1 July 2024, it is proposed that only invoices that meet the conditions provided by GEO 120/2021 on the administration, operation and implementation of the national system on electronic invoice RO e-Invoice and electronic invoice in Romania will be considered invoices for transactions carried out between taxable persons established in Romania according to art. 266 para. (2). From this date, the use of the electronic invoice is subject to acceptance by the recipient, except for invoices that meet the conditions provided by GEO 120/2021.
8.Increase in excise duty and introduction of a non-harmonised excise duty for certain products, as of 1 January 2024
It is proposed to repeal the provisions according to which:
- From 1 January 2024, the rate of excise duty on the products referred to in No. Crt. 1 – 5 of Annex No. 1 (beer, wines, fermented beverages other than beer and wines, intermediate products, ethyl alcohol), is updated with the increase in consumer prices in the last 12 months, calculated in September of the year preceding the year of application, compared to the period October 2022 – September 2023, officially communicated by the National Institute of Statistics.
- annual updating of the rate of excise duty on beer referred to in No. Crt. 1 of Annex No. 1 of Title VIII – Excise duties and other special taxes of the Tax Code, to be limited to an annual percentage to be established by October 31, 2023.
It proposes to change the level of excise duties for:
- alcohol and alcoholic beverages,
- manufactured tobacco products,
- energy products.
The list of products subject to non-harmonised excise duties is amended, these being:
- liquid with or without nicotine,
- products containing tobacco, intended for inhalation without burning
- products intended for inhalation without burning, containing tobacco substitutes, with or without nicotine,
- non-alcoholic beverages with added sugar for which the total sugar level is between 5 g – 8 g / 100 ml
- non-alcoholic beverages with added sugar for which the total sugar level exceeds 8 g/100 ml, by placing them within the scope of products subject to non-harmonised excise duty.
Economic operators producing and selling non-alcoholic beverages with added sugar will therefore benefit from the second significant increase in taxation, after increasing the VAT rate to 19% starting in 2023.
9.Introduction of special tax on high-value immovable and movable property, starting January 1, 2024
The following taxpayers shall be liable to pay the special tax on immovable and movable property of high value:
- individuals who, on December 31 of the previous year, own / jointly own residential buildings located in Romania, if the taxable value of the building exceeds RON 2,500,000;
- individuals and legal entities owning cars registered/registered in Romania whose individual purchase value exceeds 375,000 lei. The tax is due for a period of 5 years starting with the fiscal year in which the delivery-receipt of the car takes place or for the fraction of years remaining until the end of the period of 5 years from this date for those in which the delivery-receipt of the car took place previously.
The special tax on high-value immovable and movable property is calculated as follows:
- in the case of properties representing residential buildings, by applying a rate of 0.3% on the difference between the taxable value of the building communicated by the local tax body through the tax decision and the ceiling of 2,500,000 lei;
- in the case of properties representing cars, by applying a rate of 0.3% on the difference between the purchase value and the ceiling of RON 375,000.
Special tax on high-value immovable and movable property is due for the entire tax year. Taxpayers are obliged to calculate, declare and pay special tax on high-value real estate and movable property as follows:
- by 30 April inclusive of the current tax year, in the case of tax on high value residential buildings;
- until 31 December inclusive of the current tax year, in the case of high value cars.
The special tax on real estate and movable property of high value constitutes revenue of the state budget and is administered by A.N.A.F.
10.Introduction of measures to ensure tax compliance, applicable within 15 days of publication of the law in the MO
It proposes the introduction of measures to prevent and combat illicit economic activities, defined as the economic activity carried out by persons not organized in accordance with the legal provisions in force, as well as the economic activity carried out with goods that are not accompanied by documents of origin. For these activities, a gradual system of contravention fines is proposed, depending on the number of acts sanctioned in 12 months, accompanied by the complementary measure of confiscation of goods used in illicit economic activities, respectively the measure of suspension of activity for 15 days.
The draft law also proposes measures to strengthen financial and fiscal discipline, increase voluntary compliance in the case of shipments of goods and some measures on electronic invoice and suspension of a deadline:
- In order to monitor the transports considered to be fiscally risky, it is desired to apply intelligent seals that record data and transmit status and position data to an IT application, in order to track the movement of goods by road (Ro e-Seal system).
- It is intended to eliminate the possibility to pay half of the minimum fine within 15 days from the date of delivery or communication for contraventions provided by several normative acts: Accounting Law (Law 82/1991), Law no. 70/2015 on strengthening financial discipline regarding cash collection and payment operations, GEO 28/1999 on the obligation of economic operators to use fiscal electronic cash registers, Fiscal Procedure Code, Fiscal Code, GEO 41/2022 for the establishment of the National System for the monitoring of road transport of goods with high fiscal risk RO e-Transport.
- It is proposed to generalize, between January 1 and June 30, 2023, the transmission of invoices through the Ro e-Invoice system, for goods and services sold on the B2B relationship with the place of taxation in Romania, by economic operators established in Romania, and economic operators – taxable persons not established, but registered for VAT purposes in Romania, as well as in relation to public institutions (other than on the B2G relationship) by economic operators established in Romania, with the sanction of violation of the provision starting with April 1, 2024. Invoices for VAT-exempt exports of goods and intra-Community supplies are exempt from this obligation. During this 6-month period, suppliers are obliged to send invoices issued to recipients according to the provisions of art. 319 of the Fiscal Code, unless both the supplier / provider and the recipient are registered in the RO e-Invoice Register.
- The generalized issuance of invoices on the B2B relationship through the RO e-Invoice system will apply from July 1, 2024. The receipt and registration by the recipient of the invoice – taxable person established in Romania, of an invoice issued by suppliers established in Romania, on the B2B relationship, without its issuance and transmission being through RO e-Invoice, is sanctioned with a fine in the amount of input VAT entered in the invoice.
Also, the draft law proposes the modification of some normative acts, as follows:
- The level of fines provided for by the accounting law is increased.
- The sanctions to GEO 28/1999 on the use of cash registers are amended.
- It is proposed to reduce the daily cash payment ceilings and introduce a ceiling on the cash balance of the petty cash (amending Law 70/2015)
- It is proposed to amend the Companies Law (Law 31/1990), allowing ANAF to initiate the collection of arrears or to initiate fiscal control actions at the companies requesting deregistration.
News about Tax & Training
As usual, we are pleased to keep you updated with the latest projects and the main events we are involved in.
In September 2023, we participated in the Cross-Border Workshop organized by Integra International in Berlin, with the theme “R&D tax incentives worldwide”, together with tax specialists from the European Union, USA, Canada, Japan, Africa and New Zealand.
October started with a business breakfast organized for our clients, large and medium taxpayers, to debate the impact of tax measures proposals. We also discussed the new fiscal measures at ZF Live, with Razvan Botea. You can follow the registration link here:
In order to ensure wider access to discussions and debates, we decided to organize, on October 30, from 3 to 4 pm, a webinar on Linkedin, on the topic of tax changes introduced through the Government accountability procedure:
This information does not constitute tax or accounting advice. Nadia Oanea or NOA Tax & Training SRL do not assume responsibility for applying tax and accounting provisions in cases specific to each taxpayer. This information is not provided with the intention of contributing to the avoidance or reduction of taxes, duties or ancillary obligations imposed by the authorities.