Main legislative changes of July 2023
1. Mandatory e-invoicing starting with 1st of January 2024
On July 27, 2023, the Official Journal of European Union published the Council’s implementing EU Decision no. 2023/1553, dated July 25, 2023.
The Decision allows Romania, starting with 1st of January 2024, to introduce mandatory e-invoicing for all transactions carried out between taxable persons established in Romania. In addition, the use of electronic invoices will not be subject to recipient’s acceptance. The measure is applicable until December 31, 2026.
In the following period, the Romanian authorities must establish the categories of economic operators who are obliged to issue e-invoices within business-to-business (B2B) relationships and to send them via the national electronic invoicing system RO e-Factura, as well as the date from which this obligation takes effect.
2. The procedure for adjusting the tax difference additionally redirected for sponsorships
In the Official Gazette no. 643 dated July 13, 2023, was published the NAFA Order no. 1090/2023 approving the Procedure for determining and adjusting the tax difference additionally redirected for sponsorships.
We remind you that if, following the submission of the Form no. 177 "Request for the redirection of corporate income tax/microenterprise income tax", the tax due for the year for which the redirection was requested is adjusted downwards, and the taxpayer redirected an amount that exceeds the amount that could have been redirected, then the taxpayer owes to the state budget the tax difference additionally redirected.
Thus, the present Order clarifies the mechanism for determining the tax difference additionally redirected. In this respect, two new positions are introduced in the Form 100, respectively:
- position no. 91 Differences in additional redirected corporate income tax; and
- position no. 92 Differences in additional redirected microenterprise income tax.
3. Increasing the value of meal tickets
In the Official Gazette no. 691 dated July 27, 2023, was published GEO no. 69/2023 regarding the increase of the nominal value of meal tickets.
Starting with 1st of August 2023, the value of a meal ticket can be a maximum of 35 LEI, and starting with 1st of January 2024, the value will increase to 40 LEI and will remain at this level until September 2024.
4. The application of the reduced 5% VAT rate to wood and energy industries
In the Official Gazette no. 633 dated July 11, 2023, was published the Law no. 216/2023 introducing a series of amendments regarding the application of reduced 5% VAT rate in wood and energy industries.
a) Wood industry
The application of the reduced 5% VAT rate has been extended to the supply of sawdust, waste, scrap wood, as well as for their usage as heating fuel, which falls under the CN codes expressly provided by law. The reduced VAT rate will apply both for supplies to individuals and to legal entities, or other entities, regardless of their legal form of organization, based on a sworn responsibility statement made available to the supplier attesting their status as final users.
b) Energy industry
Regarding the application of reduced 5% VAT rate for supply and installation of photovoltaic panels for housing and buildings of central or local administrations, or entities’ buildings under their coordination/subordination, excepting companies, it is clarified that the reduced rate applies to all necessary components purchased separately for this purpose. Moreover, the reduced VAT rate also applies similarly to heat pumps.
In addition, the applicability of the reduced 5% VAT rate is extended to the supply and/or installation of components for the repair and/or extension of these systems, as well as to the supply of the systems as component part of, or as extra options to, the supply of construction to the recipients mentioned above.
In order to benefit from the reduced VAT rate, the buyers must sign a sworn responsibility statement or, in case of individual purchasers only, to sign for receipt of the goods on the invoice that states the address where the goods are installed.
5. Amendments to the procedures for granting tax facilities to agricultural, food and construction industries
In the Official Gazette no. 607 dated July 3, 2023, was published the Ministry of Finance Order no. 2044/2023 regarding the amendment and completion of the Procedure for granting tax facilities to construction field.
In the Official Gazette no. 611 dated July 4, 2023, was published the Ministry of Finance Order no. 2043/2023 regarding the amendment and completion of the Procedure for granting tax facilities to agricultural and food industries.
The purpose of these Orders is to revise the Procedures for granting tax facilities to agricultural, food and construction industries, in order to bring them into line with amendments previously introduced by Ordinance no. 16/2022 approved with amendments and completions by Law no. 370/2022, and with amendments introduced by GEO no. 168/2022, respectively:
- the introduction of the condition that the tax facilities should be granted only to individuals who obtain income from salaries and similar to salaries, for the activity carried out in Romania, on the basis of individual employment contracts - applicable starting with the income related to the month of January 2023;
- the change of the maximum ceiling from 30.000 LEI monthly to 10.000 LEI monthly, inclusively, with the mention that the tax facilities cannot be applied for the part of the monthly gross salary income that exceeds 10.000 LEI – applicable starting with the income related to the month of August 2022;
- the clarification of the rules regarding the turnover calculation mechanism.
In addition, in the case of tax facilities granted to the construction field, starting with the income related to the month of January 2023, the minimum threshold representing gross monthly income from salaries has been modified from 3,000 LEI monthly to 4,000 LEI monthly, inclusive.
6. Transposition of the Mobility Directive into national legislation
In the Official Gazette no. 667 dated July 20, 2023, was published the Law no. 222/2023 transposing into national law the provisions of EU Directive 2019/2121 (Mobility Directive) regarding the cross-border mergers, divisions, and conversions.
By means of this law, three new chapters are included in Companies Law no. 31/1990, respectively: chapter IV named „Cross-border merger”, chapter V named „Cross-border conversion” and chapter VI named „Cross-border division”.
Disclaimer
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