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Amendments and completion of the Methodological Norms for the application of law 227/2015

In this issue:

Decision no. 864/2020 for the amendment and completion of the Methodological Norms for the application of Law no. 227/2015 on the Fiscal Code, approved by Government Decision no.1/2016

The Decision brings the following changes:

Income tax

It is added in the category of expenses regulated by normative acts in force, deductible to the calculation of the fiscal result, also the expenses incurred in order to comply with the compensation obligations provided by GEO no.189/2002 regarding the compensatory operations regarding procurement contracts and national security.


Value Added Tax

From the VAT perspective, part of changes brought by this Decision had as purpose the correlation of previous changes of the Fiscal Code (e.g. the alignment of provisions regarding the reduced VAT rates).


The decision also brings amendments on the following aspects:

-  When calculating the registration ceiling for VAT purposes, natural persons who carry out two real estate transactions during a calendar year will also take into account the second real estate transaction, regardless of whether it is exempt from VAT or is taxable;

- The conditions under which the obligation to self-charge VAT for the transfer of food intended for human consumption does not intervene, if the transfer is carried out in accordance with the legal provisions on reducing food waste;

- Vouchers for which not all the elements necessary to determine the tax are known (e.g. meal vouchers, holiday vouchers, gift vouchers) are considered multi-purpose vouchers;

- Instruments that give the holder the right to benefit from a discount for goods/services are not considered single/multipurpose vouchers;

- The administration of credits and/or credit guarantees performed by one of the financial institutions that grant the syndicated credit, and which is designated by the other participants at the syndicated credit agreement for the administration of the credit/administration of the credit guarantees is VAT exempt;

- The VAT exemption applicable to the administration of special investment funds is also applicable to occupational pension funds;

- Taxable persons who re-register for VAT purposes are granted the right to perform a positive adjustment of the VAT related to capital goods used for carrying out operations with deduction right (other than those consisting of taxable supplies) during the period in which the VAT  code has been canceled;

- In case of entities requesting the registration for VAT purposes after the beginning of the activity, the registration will be considered valid starting with the first day of the month following the request both for the persons exceeding the registration threshold and for those who opt to apply the normal regime;

- The criteria for assessing the fiscal risk in case of registration for VAT are applicable to companies requesting re-registration after the ex-officio cancellation of the VAT code due to a high tax risk.


Excise duties and other special taxes

From the excise perspective, a series of amendments brought by this Decision aim to correlate previous amendments to the Fiscal Code or provide technical correlations (e.g. alignment definition cider).


The decision changes the following aspects:

- For fiscal ware housekeepers is introduced: the minimum limit up to which the guarantee can be reduced and additional documents to be submitted at the time of authorization/re-authorization;

- For the issuance of the end-user authorization, the applicant should not register outstanding tax obligations to the general consolidated budget;

- All the public authorities can benefit from the exemption from excise duty on energy products delivered for use as aviation fuel;

- The registered consignee, the authorized importer and the tax representative have the additional obligation to declare the departure of excisable products in the centralized situation provided in the Appendix 19 from the Methodological Norms;

-  Economic operators shall notify the customs authority in writing of their intention to withdraw from the market alcoholic beverages and processed tobacco products for recycling, reconditioning, destruction, at least 7 working days before the date on which their destruction begins, in order for the customs representative to participate in these operations.


The EY team is available for details and clarification of the issues mentioned above.

Prepared by:
Daniela Neagoe ― Senior manager, Indirect Tax
Mihai Petre ― Director, Indirect Tax
Ecaterina Boca ― Senior Consultant, Knowledge Management Department 
For additional information, please contact:
Alex Milcev, Partner ― Tax & Law Leader Romania
Georgiana Iancu, Partner ― Head of the Indirect Tax Department 
Ernst & Young SRL
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22nd Floor, 15-17 Ion Mihalache Blvd.,
Sector 1, 011171, Bucharest, Romania
Tel: (40-21) 402 4000, Fax: (40-21) 310 7124
Email: office@ro.ey.com
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