Wednesday July 21, 2010
Romania has announced a requirement for companies to register in the “Registry of Intra-Community Operators” if they make or receive intra-community supplies of goods and services. This is effective from 1st August 2010.
Businesses must submit an application form plus a criminal record clearance certificate covering all administrators and shareholders of the company.
If a non-resident company fails to register, its VAT number will no longer be valid for intra-community transactions.
Please contact us if you would like further information.
Friday July 16, 2010
This is a reminder that the standard rate of VAT in Romania will be increased to 24% (from 19%) on 1st July 2010. The reduced rates (5% and 9%) will not be increased.
The standard VAT rate in Greece will be increased from 21% to 23% from 1st July 2010. The reduced rates will also be increased. The 10% rate goes up to 11% and the 5% rate goes up to 5.5%.
Tuesday June 1, 2010
The Romanian tax authorities have introduced a mechanism that will automatically change the VAT status of taxable persons in certain circumstances. This will include:
- automatic registration for VAT of taxable persons that are liable to be registered for VAT but have not complied with this obligation;
- the automatic de-registration of VAT registered taxable persons that are inactive; and
- the automatic de-registration of taxpayers that are not required or entitled to be registered for VAT.
Friday April 23, 2010
The Romanian tax authorities have issued an order dealing with the procedure for VAT refunds under the 8th Directive.
The new procedure allows applicants to file a VAT refund request with the tax authorities in the country where they are established. The relevant authority will then pass on details to the member state of refund.
This is in line with changes made to the 8th Directive procedures as part of the VAT Package.
Tuesday January 26, 2010
Romania’s government has been urged to reduce VAT on basic groceries.
The Association of Organic Agriculture Operators – Bio Romania and Agrostar said the ministry of public finance should reduce VAT for basic foods items such as bread, milk, vegetables and milk to three per cent.
“By reducing VAT we reduce fiscal evasion in this field and consumers will be able to buy a cheaper Romanian product,” said Marian Cioceanu, president of the association.
He also called on the government to eliminate road taxes for diesel oil used in agriculture in order to ease the financial burden on the industry.
Mr Cioceanu said that Bio Romania is convinced that lowering the VAT rate will not destabilise Romania’s budget.
“These two measures are not negotiable and together with Agrostar, we will demonstrate on Thursday in front of the finance ministry,” he added.
A recent survey by the International VAT Association found that Romania is among a group of countries in the EU that have not yet implemented working portals that facilitate electronic VAT refunds.
Tuesday July 14, 2009
Ministers in Romania have unveiled a new computerised process to settle VAT rebate claims in the country.
The Romanian government has announced plans to launch a new electronic system to support the rebate of VAT claims.
Prime minister Emil Boc unveiled the plan, which will see people given refunds within the legal deadline of 45 days, alongside public finance minister Gheorghe Pogea.
The system will also see repayments made to the public over three fixed separate days across every month.
Discussing the plans, Mr Boc said: "The Executive has elaborated a computerised mechanism for VAT reimbursement whereby it removes delays on the one hand and the eventual abuses on the other hand."
The launch of the system has come after AFP reported that Lithuania is considering an increase in its rate of VAT.
It is believed that the tax is being increased by two per cent to 21 per cent.
Thursday April 16, 2009
The Romanian government has requested a consultation from the European Commission regarding VAT deductions on company purchases of vehicles.
It is requesting the right to detour from "European Union (EU) norms" and remove the right for VAT deduction of the purchase of vehicles by companies and to limit the amount for maintenance to 30 per cent, reports Romanian news agency Actmedia.
VAT will no longer be deducted for commodities used for vehicles including fuel, lubricants, parts, repairs and maintenance.
Leasing firms will also be able to deduct VAT upon acquiring vehicles.
A source told the news agency: "The government intends to remove the right to VAT deduction on the purchase of vehicles and fuel and lubricant spending, but this requires consultations with the European VAT Committee, according to European directives."
The VAT deductions connected to maintenance and repair do not meet current European directives and need approval from the EU council, it added.
It was recently revealed the Czech government had approved a VAT cut from 19 to nine per cent for businesses in its service sector.
