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Legislative summary - August 2019

In this issue:

·        New version of the Value Added Tax Return (form 300)

·        Non-EU established companies can no longer act as exporters in Romania, even if using indirect customs representation method

·        Form 109 “Form regarding tax on financial assets”

·        Order no. 2273/2019 (Forms R404 and R405)

·        Miscellaneous

 

·        New version of the Value Added Tax Return (form 300)

Order of the president of the National Agency for Fiscal Administration for approving the template and content of the form (300) "Value Added Tax Return"

Inter-alia, the following amendments were introduced to the new version of the  Value Added Tax Return (form 300):

-        Amendment of section "Identification data of the taxable person". Under this section, the boxes containing information regarding the identification data of the taxable person were numbered from A.1. to A.17.. The information regarding the tax domicile, which was previously cumulated in a single box, is now inserted in separate boxes for each field.

-        Amendment of section "Delivery of goods/Supply of Services within the country and exports". The following two lines were inserted under this section:

·        Row 17. Intra-Community supplies of services according to art. 278 para. (8) of the Fiscal Code for which the place of supply is in Romania;

·        Row 18. Adjustments regarding the intra-Community supplies of services according to art. 278 par. (8) of the Fiscal Code for which the place of supply is in Romania.

-        Adding the section "Information regarding the total value, without VAT, of the supplies of services to non-taxable persons from other EU Member States provided in art. 278 para. (8) let. b) of the Fiscal Code, respectively telecommunications, radio and television services, as well as electronically supplied services”. This new section contains information on the total value without VAT of the supplies of services provided under the above-mentioned rows 17 and 18 for the previous year, respectively the values cumulated for the current year.

The new form 300 "Value Added Tax Statement” will be used starting with the submission of the fiscal obligations related to the month of July 2019.

For more details, please refer to the Official Gazette no. 687/20 August 2019.

 

·        Form 109 “Tax on financial assets”

Order no. 2085/2 August 2019 for approval of the form and content of Form 109 „Tax on financial assets”

The order contains the template and content of the form 109 "Tax on financial assets”, which should be filled in and submitted by financial institutions, as defined in art. 86 of the Emergency Ordinance no. 114/2018.

Please refer to Tax Alert no. 28/August 2019 for more details.

 

·        Non-EU established companies can no longer act as exporters in Romania, even if using indirect customs representation method

According to Order no. 2254/2019, starting with August 22 2019, economic operators not established in the European Union can no longer perform export operations in Romania, even if the indirect representation method is used. Specifically, they can no longer be mentioned in box 2 of the customs declaration as exporter.

For more details, please refer to the tax alert no. 29/August 2019.

 

·        Order no. 2273/2019 (Forms R404 and R405)

On 26 August 2019, it was published in the Official Monitor, the Order no. 2273/2019 providing the submission of Country-by-Country reporting forms (Forms R404 – “Country-by-country report” and R405 – “Notification regarding the quality of the constituent entity of the multinational enterprise group, respectively the identity and tax residence of the reporting entity of the multinational enterprise group”) only through electronic means of remote transmission (on-line submission).Thus, it is no longer possible to submit these forms in hard copy.The template and content of the forms have not been significantly modified.

 

·        Miscellaneous

Amendment to Government Decision no. 34/2019 regarding the 2019 work authorizations for foreigners working in Romania

The Emergency Ordinance no. 634/2019 published in the Official Gazette no. 719/30.08.2019 supplements the work authorizations’ annual quota for non-EU nationals by 10,000 work authorizations. The total annual quota of work authorizations for 2019 is now 30,000.

NAFA projects for the approval of the procedures for the ex officio establishment of the annual income tax, social security contribution and health fund contribution due from the individuals, as well as the model and the content of certain forms.

Through the projects published on the NAFA’s website on August 23 and respectively August 26, 2019, are introduced to the public debate the procedures for ex officio establishing of the tax charges for taxpayers who did not fulfill their reporting obligations.

Considering that according to the Government Emergency Ordinance no. 18/2018 the tax authorities no longer issue tax decisions starting with the 2018 annual tax return, the projects propose the right of the tax authorities to determine ex officio the tax due in cases where the taxpayers did not fulfill their reporting obligations.

The ordinance projects propose the following: the approval of the procedure regarding the ex-officio assessment of the annual income tax, social security contribution and health fund contribution, the approval of the model and content of the form regarding the computation base, the approval of the model and content of the ex officio decision and the annulment one for the income tax and contributions for individuals.

 

·        Amendments on the Appendix of the Methodology for setting the reference prices for crude oil extracted in Romania and of the Technical instructions regarding the activity of titleholders of petroleum agreements

Order no. 281/2019 of the National Agency for Mineral Resources (NAMR) for amending Appendix no. 2 of the Order no. 204/2019 of NAMR on the approval of the Methodology for setting the reference prices for crude oil extracted in Romania and of the Technical instructions regarding the activity of titleholders of petroleum agreements

Inter-alia, the following amendments were introduced to Appendix no. 2 of the Order no. 204/2019 on the technical instructions regarding the activity of titleholders of petroleum agreements:

-         introduction of the quarterly payment obligation of the petroleum royalty by 25th day of the first month following the relevant quarter (being aligned with the obligation already mentioned in the Petroleum Law
no. 238/2004);

-         until 1 October 2019, management documents, storage documents, delivery-receipt documents, as well as custody and transport documents can include also types of crude-oil established by mutual agreements between sellers and buyers, respectively between titleholders of petroleum agreements for internal operations of storage, custody and transport of crude oil.

For more details, please refer to the Official Gazette  no. 638/1 August 2019.

 

·        Amending the Appendix of the Order no. 32/2018 on the approval of the Methodology for setting the reference prices for natural gas extracted in Romania

Inter-alia, the following articles were introduced to the Appendix of the Order no. 32/2018 on the Methodology for setting the reference prices for natural gas extracted in Romania:

-         for natural gas quantities extracted in Romania and resulted from the current internal production activity sold at RON 68/MWh towards suppliers of domestic customers and producers of thermal energy, only for the quantity of natural gas utilized to the production of thermal energy in the cogeneration plants and thermal plants for domestic consumption (in accordance with Electricity Law no. 123/2012, art. 124 (1(1) – 1(3)), for the applicability period, the reference price should be setting monthly as:

Reference price (RON/1,000 Stmc) = 68 (RON/MWh) x PCS (average caloric power, transmitted annually by the National Society of National Gas Transport ‘Transgaz’ SA Medias

The natural gas producers will have to document separately in their computation of petroleum royalties, the quantities of natural gas recovered at the price of RON 68/MWh regulated through Order no. 114/2018 separately from the quantities of natural gas which are recovered on the free market, distributed proportionally on natural deposits, depending on the value of the production extracted therefrom.  

For more details, please refer to the Official Gazette no. 638/1 August 2019.

 

Prepared by:
Costin Manta – Director, Indirect Taxes
Carmen Afanasenco – Senior Manager, Direct Taxes
Geanina Ciorata – Manager, People Advisory Services

 

For additional information, please contact:
Alex Milcev, Partner – Head of Tax&Legal

 

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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