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Amendments to the Fiscal Code - regulation of VAT treatment of single/multiple use vouchers
Law no. 60 of 15 April 2019 to amend and supplement Law no. 227/2015 regarding the Tax code (Official Gazette no. 296 of 17 April 2019).
Notes:
- The amendments to the Tax code concern the implementation of Directive 2016/1065 regarding the treatment of the VAT applicable to single and multiple use vouchers, respectively.
- The single use voucher is the voucher where the place of delivery of the goods or of provision of the services referred to in the voucher and the VAT due for those goods or services are known at the moment of issuing the voucher;
- The multiple use voucher is a voucher different from the single use one;
- In the case of single use vouchers, the VAT chargeable event occurs at the time of transfer of the coupon, and in the case of multiple use vouchers, the chargeability occurs at the moment of delivery of the goods/provision of the services.
- Depending on the specifics of the taxpayer’s activity which involves the use of vouchers, we recommend a careful analysis of the incidental fiscal implications.
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Amendments of methodological rules regarding the VAT
Government Decision no. 213 of 10 April 2019 amending and supplementing title VII “Value added tax” of the Detailed rules to apply Law no. 227/2015 regarding the Tax Code, approved by Government Decision no. 1/2016 (Official Gazette no. 282 of 12 April 2019).
Notes:
- Specific amendments were made to the methodological rules given under Title VII of the Tax Code, determined largely by taking into account of the Decision of the European Court of Justice in case C-463/16 Amsterdam CV Stadium.
- In this regard, if a package is marketed containing goods or services subject both to the reduced VAT rate and to the standard VAT rate and a main operation can be established, the VAT rate applicable to the package is the VAT rate attributed to the main operation.
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Amendment to the procedure Records of non-profit entities
Order of NAFA President no. 1086 of 17 April 2019 to amend the Order of NAFA president no. 819/2019 to approve the Procedure regarding the organisation of the Records of religious entities/establishments which are granted tax deductions, as well as regarding the organisation of the model and content of certain forms (Official Gazette no. 303 of 18 April 2019).
Notes:
- As a reminder, upon entry in the Register, in addition to the tax registration certificate issued by the local tax authority, the non-profit entities and the religious establishments submit also the form 163 “Application for entry/removal in/from the Register of entities/ religious establishments for which tax deductions are granted”.
- This Order provides for the following amendments:
- the specialized department (Legal Persons Records) will request from the department of taxpayer records information regarding the applicant’s potential pending tax liabilities at the latest the day following the application (the previous term was 2 days).
- the taxpayer records department shall send the answer within one day from the request (the previous term was 2 days)
- the non-profit entity/ religious establishment that fulfils the conditions shall be entered into the records with the date of approval of the decision (the previous date was “the date of communication of the decision”). -
Procedure to transfer receivables due by insolvency debtors
Order of NAFA president no. 942 of 4 April 2019 to approve the Procedure regarding the transfer of budget claims due by debtors in insolvency proceedings (Official Gazette no. 285 of 15 April 2019).
Notes:
- According to the provisions of Art. 264^1 of the Tax Procedure Code, the budgetary creditor (NAFA) may assigns the budget claims due by debtors in insolvency proceedings if the following conditions are cumulatively fulfilled:
- the payment of the claim price and the recovery of the budget claims is carried out within maximum 3 years since the date of conclusion of the assignment contract;
- the assignee justifies a public interest for the transfer of the claim.
- This order approves the Procedure regarding the transfer of budget claims due by debtors in insolvency proceedings, as well as the models of the forms used in it.
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Tax relief for organizers of EURO 2020
Order of the minister of public finances no. 1957 of 5 April 2019 regarding the establishment of the procedure to apply the provisions of Art. II point 1 - 1^3 of Law no. 145/2018 approving the Emergency Government Ordinance No. 18/2018 on adopting certain fiscal-budgetary measures and amending and completing certain legislative acts (Official Gazette no. 274 of 10 April 2019).
Notes:
- According to the provisions of EGO 18/2019, by way of derogation from the provisions of the Tax code, within the context of organizing the Final tournament of the European Football Championship 2020 tax relief has been provided for.
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Amending and supplementing legislative acts
Emergency Ordinance no. 19/2019 amending and supplementing certain legislative acts, published in the Official gazette no. 245 of 29 March 2019.
This also brings a series of amendments to EGO no. 114/2018 on the implementation of measures in the field of public investments and of fiscal-budgetary measures.
Taxation of financial assets of banking establishments.
Notes:
- Determining the tax on assets shall no longer be determined with respect to the ROBOR quarterly average, as was initially established.
- Therefore, when calculating the tax, the following rates are applied to the tax base:
- 0.3%/year for the banking establishment that owns a market share smaller than 1%;
- The market share is established at the end of the semester/year for which the tax is owed.
- The banking establishments are required to compute the tax on assets half-yearly or at the end of the year by applying the previously mentioned rates.
- The tax base includes the net financial assets of the banking establishment outstanding at the end of the semester/year for which the tax is due, and diminishes with certain financial assets, expressly provided for.
- In addition, the banking establishments receive a tax discount to increase financial brokerage or to reduce the interest margin below a certain level (i.e. the reference interest margin or the target reduction of the interest margin).
- The tax on assets computed and reduced in the aforementioned cases, based on the indicators regarding the market share, the balance of credits and the interest margin recorded in the first semester of the year for which the tax is due and on half of the target levels of credit increase and of interest margin decrease, is reported and paid until August 25th of the year for which it is due.
- In the first semester, the tax is not due and is not reported in the following cases:
- if 100% of the target interest margin decrease has been reached, or
- if the level of the aggregate percentage of credit increase and of interest margin decrease is at least 100%.
- For the purpose of annual adjustment, based on the indicators established yearly (i.e. the market share, the interest margin etc.) the value of the tax on assets is recomputed, and the resulting amount is reported until August 25th of the year following the one for which the tax is due. The deficits are paid, and the surplus is refunded or compensated in accordance with the provisions of the Tax Procedure Code.
- The banking establishments who register accounting losses prior to the computation of the tax on assets, at the end of the semester or of the year for which it is due, do not fall under this article.
- The tax on assets is due within the limits of the accounting profit, whether or not it exceeds its level, without affecting the tax due for the following years.
- The taxpayers newly established during the year owe the tax on assets from the following year onwards.
- The expense on the tax on assets represents a deductible expense at establishment of the fiscal result.
- The model and content of the statement regarding the tax on assets are established by Order of the NAFA President within 60 days.
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Amendment to legislation regarding day laborers
Emergency Government Ordinance no. 26 of 18 April 2019 amending and supplementing certain legislative acts (Official Gazette no. 309 of 19 April 2019).
Notes:
Law no. 52/2011 on performing certain occasional activities carried out by day laborers has been amended and supplemented with the following:
- The following fields in which day laborers may work have been introduced:
a) activities of organising exhibitions, fairs and congresses - group 823;
b) advertising - group 731;
c) artistic performance activities - shows - class 9001, support activities for artistic performance - shows - class 9002 and activities regarding the management of performance halls - class 9004;
d) husbandry of semi-domestic animals and other animals - class 0149;
e) catering activities for events - division 5621;
f) landscaping activities - planting, care and maintenance of parks and gardens, excepting private living accommodations - class 8130;
g) restaurants - class 5610;
h) bars and other beverage serving activities - class 5630;
i) activities related to zoos, botanical gardens and nature reserves - class 9140.
- In the case of day laborers, the period of provision of activities for the same beneficiary cannot exceed 90 days on aggregate during one calendar year.
- For the transmission of day laborers’ data on 20 December 2019 will be set up the Electronic records for day laborers.
- The revenue from the activity performed is subject to the income tax - 10%. In addition, the social health insurance contribution is due for this revenue, thus granting the day laborer the capacity of insured in the public pension system.
- The beneficiary does not owe work insurance contribution for the activity performed by the day laborers.
- The activity performed does not grant the day laborer:
i. the capacity of insured in the public health system;
ii. the capacity of insured against work accidents and professional diseases
- The computation, payment and reporting of the income tax and of the social health insurance contribution are the responsibility of the beneficiary.
Law no. 227/2015 regarding the Tax Code was amended and supplemented with the following main provisions:
- The gross remuneration received for the activity carried out by day laborers has been included in the computation for social health insurance contribution;
- A new category of natural persons who can choose to pay social health insurance contribution has been introduced.
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Forms regarding The National Register for cash registers
Order of the NAFA president no. 857 of 28 March 2019 regarding the amendment to the Order of the President of the National Agency for Fiscal Administration no. 4.156/2017 to approve the information contained within the national register for electronic fiscal cash registers installed in the counties and in the sectors of Bucharest Municipality, as well as their registration methodology and procedure (Official Gazette no. 273 of 10 April 2019).
Notes:
- As a reminder, each electronic fiscal cash register that is produced, imported or acquired intra-Community must be registered in the national register.
- In this regard, this Order has amended the registration forms for electronic cash registers.