Tax alert no. 13 – Law no. 60 / 2019
In this issue:
Law no. 60 / 2019
Law no. 60/2019 for amending and completing the Law no. 227/2015 regarding the Fiscal Code, with subsequent amendments and completions
Law no. 60/2019, amending and supplementing the Fiscal Code, was published on 17 April 2019 in the Official Gazette no. 296.
The current law transposed the provisions of the Council Directive (EU) 2016/1065 amending Directive 2006/112/EC as regards the treatment of vouchers and the art. 1 of the Council Directive (EU) 2017/2455 amending Directive 2006/112/EC and Directive 2009/132/EC as regards certain VAT obligations for supplies of services and distance sales of goods.
The main amendments of the Romanian Fiscal Code
1. The VAT rules applicable to vouchers
The voucher is defined as an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services and where the goods or services to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including in the terms and conditions of use of such instrument;
- The single-purpose voucher - a voucher where the place of supply of the goods or services to which the voucher relates, and the VAT due on those goods or services, are known at the time of issue of the voucher;
- The multi-purpose voucher - a voucher, other than a single-purpose voucher.
According to the new legislative provisions, each transfer of a single-purpose voucher made by a taxable person acting in its own name is deemed to be a supply of goods or services to which the voucher relates.
Thus, the actual handing over of the goods or the actual provision of the services in return for a single-purpose voucher, accepted as consideration or partial consideration by the supplier shall not be regarded as an independent transaction, for the value of the transaction covered by the voucher. Further on, for the part of the consideration that is not covered by the single-purpose voucher, an independent transaction is deemed to occur.
If the supplier of goods/services is not the taxable person that issued in its own name the single-purpose voucher, the supply of goods or services to which the voucher relates is deemed to be performed by the supplier to the issuer of the voucher, a taxable person, at the moment the voucher is used.
When the transfer of a single-purpose voucher is made by an intermediary (taxable person acting in the name of another taxable person), the transfer shall be regarded as a supply of the goods or services to which the voucher relates made by the taxable person in whose name the intermediating taxable person is acting.
The actual handing over of the goods or the actual provision of the services in return of a multi-purpose voucher, accepted as consideration or partial consideration by the supplier shall be subject to VAT. On the other hand, each preceding transfer of that multi-purpose voucher shall not be subject to VAT.
Under the new provisions, the taxable amount of the supply of goods or services carried out in exchange for a multi-purpose voucher shall be equal to the consideration paid for the voucher or, in the absence of information on that consideration, the monetary value indicated on the multi-purpose voucher itself or in the related documentation, less the amount of VAT relating to the goods or services supplied.
In case of a multiple-purpose voucher accepted as a partial consideration for the supply of goods or services, the taxable amount will include the value of the voucher, less the amount of VAT relating to the goods or services supplied.
The provisions related to vouchers are applicable only to vouchers issued after the date of entry into force of the current law, respectively April 20, 2019.
2. Amendments of the VAT rules applicable to the supplies of telecommunication, broadcasting and television services, as well as to electronically supplied services
According to the new provisions, the taxable person non-established in the European Union is a taxable person who does not have the place of business or a fixed establishment on the EU territory. The obligation of the taxable person to not be registered for VAT purposes for operations other than those subject to special schemes has been eliminated.
The suppliers of telecommunications, broadcasting and television services, as well as electronically supplied services to non-taxable users will not be required to register for VAT purposes in the Member State of the beneficiaries, if the following conditions will cumulatively be met:
- the provider is established or, if it is not established, has the permanent address or usual residence in a single Member State;
- the services are provided to non-taxable persons who are established, have their domicile or residence in any Member State other than that of the provider;
- the total value, net of VAT, of the afore-mentioned supplies does not exceed the threshold of Euro 10,000 or the equivalent of this amount in the national currency in the current calendar year and has not exceeded that amount during the previous calendar year.
Furthermore, the providers who are established or, if they are not established, have their domicile or usual residence in Romania have the right to opt for the place of supply to be established in the Member State of the beneficiaries, that option applying for at least two calendar years.
Clarifications on the nature of electronically supplied services have been introduced. In this respect, if the service provider and its client communicate via e-mail, that does not mean that the respective service is electronically provided.
Last but not least, both the EU and non-EU providers using special schemes for electronic, telecommunication, broadcasting or television services must comply with the invoicing rules of the Member State where they are registered for VAT purposes in order to provide services under these regimes.
Niclas Butan, Tax Manager, Indirect Tax
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