Main legislative changes of June 2024
1. Pre-filled RO e-VAT return
In accordance with the latest legislative provisions, as of July 1st, 2024, taxable persons registered for VAT purposes will be subject to a new system through the RO e-VAT pre-filled return, which will become operational beginning August 1st, 2024.
This return will integrate information from various systems such as RO e-Invoicing, RO e-Transport, RO e-Seal, RO e-SAF-T, and other IT systems managed by the Ministry of Finance.
The pre-filled RO e-VAT return will be sent to taxpayers by the tax authority, for each tax reporting period, through the Virtual Private Space (VPS), by the 5th of the month following the legal deadline for submitting the normal VAT return. (Read more…)
ANAF will monitor and compare the pre-filled returns with those submitted by taxpayers. Where significant differences are identified, defined as a minimum of 20% and at least RON 5,000, ANAF will issue notifications to the taxpayers concerned. After the identification of significant differences, by the 5th of the month following the legal deadline for filing the VAT return, a notification of compliance is sent electronically through the form "RO e-VAT compliance notification". This notification may also be submitted for differences below the materiality threshold, based on risk analysis.
In this situation, the taxpayer has the obligation to electronically send the result of the checkup of the differences communicated by the "RO e-VAT compliance notification" within 20 days of receiving the notification. Thereafter, ANAF analyzes the response and orders legal measures. The issuance of notifications is not an element taken into account when determining tax risk indicators until January 1st, 2025.
Failure to transmit within the deadline the result of the checks of the differences communicated in the notification, constitutes a contravention and is sanctioned by a fine from RON 5,000 to RON 10,000 for large taxpayers, from RON 2,500 to RON 5,000for medium taxpayers and from RON 1,000 to RON 2,500 for other legal entities and individuals. At the same time, the failure of providing or partial provision of the necessary information constitutes a tax risk indicator regarding the level of VAT declaration.
Therefore, for the management and operationalization of the RO e-VAT pre-completed return, taxable persons registered for VAT purposes are required to check the data in the pre-completed return and to reply to the electronically received "RO e-VAT compliance notification", as well as to report any technical errors resulting from the implementation of the RO e-VAT pre-completed return.
The provisions were published by Emergency Ordinance No. 70/2024, Official Gazette, Part I No. 582 of June 21st, 2024 and 87/2024, Official Gazette, Part I No. 608 of June 28th, 2024.
2. Changes on the RO e-Transport applicability procedure
The procedure established by Order No. 1337/2024, replaces that of Order No. 2545/2022, updating and adding new clarifications as the RO e-Transport legislation has evolved.
Perhaps the most important aspect of this new order is that the limits the consignment of goods subject to declaration in the RO e-Transport System are extended to include any goods transported as part of an international shipment re extended to include any goods transported as part of an international shipment(previously these limits only applied to high tax risk goods). Thus, an ITU code must be obtained for shipping of goods with a weight of at least 500 kg or a value of at least RON 10,000, transported by vehicles having a maximum authorized mass of at least 2.5 tons.
Shipments of tax-risk goods purchased in cash and carry shops, representing products that the customer chooses from the shelf, pays for and transports on his own behalf, do not have to be declared in the RO e-Transport System. Last but not least, the situation of multi-modal transport is clarified, in the sense that only the road part of the journey is declared.
As a reminder, as of July 1st, 2024, contraventions for not declaring or declaration of different quantities are punishable either with a fine between RON 20,000 and RON 100,000 or a fine and confiscation of the value of the goods, depending on the provisions violated. By exception, only for those operators who hold an AEO (authorized economic operator) certificate, the sanctions will apply from January 1st, 2025.
Regulations introduced by Ordinance No. 1337/1268/2024 published in the Official Gazette, Part I no. 597 of June 27, 2024 and GEO No. 87/2024 published in the Official Gazette Part I no. 608 of June 28th, 2024.
3. E-invoicing for B2C transactions
As of July 1st, 2024, for supplies of goods and services taking place in Romania carried out in a B2C relationship, economic operators will be able to optionally transmit invoices issued in the RO e-Invoicing system. Beginning of January 1st, 2025, reporting of these invoices in B2C relationship will be mandatory. Because the beneficiary individuals do not have access to receive invoices through the RO e-Invoicing system, the invoices issued must also be transmitted in the classic format (physical or digital).
GEO No. 69/2024 also provides details on the use of RO e-Invoicing for certain situations that were not clearly regulated previously (e.g. auto-invoices, invoices issued in distraint, invoices for operations outside the VAT scope, etc.).
Amendments were also made to the provisions of GEO No. 28/1999, whereby the tax receipts will contain new elements such as: unit of measure, CUI of the beneficiary (at the beneficiary's request), identification number of the receipt. In addition, some elements are also printed on the tax receipt in the form of a QR code.
These amendments were introduced by GEO No. 69/2024, published in the Official Gazette, Part I No 582 of June 21st, 2024.
4. New regulations for accounting records of certain taxes
In the general chart of accounts, the following accounts, with their corresponding functions, are introduced:
- 4417 " Corporate income tax at minimum turnover tax ";
- 6351 "Additional tax expenses for specific industries";
- 697 "'Corporate tax expenses at the level of minimum turnover tax";
Regulations introduced by Order No. 981/2024, published in the Official Gazette, Part I No 539 of June 10th, 2024.
5. VAT regulations for the Return Guarantee Scheme (SGR)
As of January 1st, 2025, new VAT provisions apply to SGR packaging.
Thus, it is clarified that the guarantee for products in SGR packaging charged by manufacturers does not represent a supply of goods/supply of services in the VAT scope.However, the SGR packaging not returned by the last day of the calendar year is considered a supply of goods carried out by the SGR administrator (RetuRO Sistem Garanție Returnare S.A.), with the operative event on December 31st of that year. The taxable amount of this supply of goods is the difference between the value of the guarantees received and the value of the guarantees returned by RetuRO during the calendar year, excluding VAT.
In addition, para. (9) art. 305 has been repealed, so that the adjustment of output VAT on capital goods will be made even for situations where the amount resulting from the adjustment is negligible (less than RON 1,000).
Regulations introduced by GEO No, 78/2024, published in the Official Gazette, Part I no. 596 of June 26th, 2024.
6. Procedure for ex-officio VAT computation for entities for which the VAT number has been cancelled
The procedure states that the competent tax authority issues a list of taxable persons whose VAT code has been cancelledand who, according to the information in the RO e-invoicing and RO e-Cash registers, have issued invoices/tax receipts during the period when their VAT code was cancelled, but have not submitted the special VAT return (form 311) on time. Within 5 working days, each person included in the list is notified. The list is modified several times as the persons are notified/invited to the audition and submit the 311 form or provide justifications.
For persons who do not comply or do not justify that they have no VAT to collect, the VAT is assessed ex-officio and a tax assessment is issued and served. If the taxpayer prepares the 311 return within 60 days from the date of communication of the ex-officio assessment decision, the assessment decision is cancelled.
Procedure and forms approved by Order No. 1399/2024, published in the Official Gazette, Part I No. 605 of June 28th, 2024.
7. List of large and medium-sized taxpayers
Starting July 1st, 2024, the new lists of large and medium taxpayers apply, respectively:
- For large taxpayers, the list is found here.
- For medium taxpayers, the list is found here.
Disclaimer
The information contained in this newsletter is intended to give you an overview of new legislation; the newsletter does not contain a comprehensive analysis of each topic. For further information on the topics covered please contact us. No responsibility is accepted for decisions or omissions following the use of the content of this newsletter.
Crowe România