LAW 345 01/06/2002
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Law No. 345/June 1, 2002on the value added tax*)ISSUED BY: PARLIAMENTPUBLISHED IN: OFFICIAL GAZETTE OF ROMANIA, Part I, No. 371, June 1, 2002.------ *) Law No. 345/2002 was published in OG No. 371 of 1 June 2002. LIST OF ABBREVIATIONS GD - Government Decision GEO - Government Emergency Ordinance GO - Government Ordinance OG - Official GazetteChapter 1 Scope Section 1 Taxable operationsArticle 1
(1) The value added tax is an indirect tax which is due to the state budget. The present law sets up the rules concerning the value added tax.(2) The value added tax shall be applied to the operations which meet, in a cumulative manner, the following terms:a) they should represent a delivery of goods, a paid services provision, or a similar operation;b) they should be carried out by taxable entities, as defined under article 2 (1);c) they should result from one of the economic activities stipulated under article 2 (2).(3) By paid operations one shall understand the obligation of the existence of a direct connection between the operation carried out and the compensation obtained.(4) The scope of the value added tax also includes imports of goods.Article 2
(1) Within the meaning of the present law, taxable entity means any entity, irrespective of its legal status, which carries out independent economic activities of the kind of those stipulated under paragraph (2), whatever the purpose and result of such activities might be.(2) The economic activities referred to under paragraph (1) are the activities of manufacturers, traders, and services providers, including extractive and farming activities, and those of freelance or similar professions. Also, the operation of tangible or intangible goods with a view to obtaining revenues constitutes an economic activity.(3) Within the meaning of the present law, the employees or any other persons bound to an employer by an individual labour contract or by any other legal instruments, which establish the employer-employee relationship as regards work conditions, payment, and employer's liabilities, do not act independently.(4) The public institutions shall not be deemed to be taxable entities for their administrative, social, educational, cultural, sporting, public-order, defense and state security activities, which they carry out as public authorities, even though dues, royalties, subscriptions, or fees are charged for such activities.(5) The public institutions shall be seen as taxable entities for the operations carried out, including those stipulated under paragraph (4), when treating them as non-taxable entities for such operations leads to competition distortions. The public institutions shall be deemed to be taxable entities for the activities mentioned in the annex which is an integral part of the present law.Article 3
(1) By delivery of goods one shall understand the transfer of the ownership right over the goods held by the owner to the beneficiary, directly or by means of the persons acting on their behalf.(2) Within the meaning of the present law, by goods, referred to under paragraph (1), one understands:a) tangible movable assets such as: raw materials, materials, inventory items, fixed assets which can be detached;b) real estate such as: dwelling buildings, industrial, commercial, and farming constructions, or those designed for other activities, farming land, building sites and those adjacent to constructions, including those related to urban or rural localities where constructions or other infrastructures are located;c) movable assets which cannot be detached without being damaged or without causing damages to the actual buildings, or which become real estate by their destination;d) electrical and heating power, gas, freezing agent.(3) Within the meaning of paragraf (1) the following shall be considered deliveries of goods:a) instalment sales of goods;b) transfer to the public domain of goods from the patrimony of taxable entities, under the terms stipulated in the legislation concerning the public property and its legal status, in exchange for compensation;c) transfer of ownership right over goods following a forced execution.(4) Similar to deliveries of goods shall be the take-over by taxable entities of the goods purchased or manufactured by them with a view to using them for purposes which are not related to the economic activity carried out or being placed at the disposal of other natural or legal entities free of charge, if the value added tax for such goods or their components has been deducted in full or in part. Goods granted free of charge, within the limits and for the destinations provided for by the law, shall be exempted from these provisions.(5) The operations involving exchange of goods shall take the effect of two separate deliveries. In the case of a transfer of the ownership right over one good by two or several taxable entities, by means of several transactions, each transaction shall be seen as a separate delivery, being taxed distinctively, even if such good is transferred directly to the final beneficiary. The same procedure shall also apply in the case of the exchange of services for goods.(6) One shall not consider a delivery of goods the full or partial transfer of the assets and liabilities of a taxable entity, against payment or free of charge, performed on the occasion of trading companies' merger or division operations.(7) One shall not consider a delivery of goods the contribution in kind to the registered capital of a trading company, in case the beneficiary is a taxable entity which has the right to deduct the value added tax entirely, if the tax would be applicable to that transfer. In this instance, the beneficiary is considered to be the successor of the entity making the transfer. If the beneficiary is a taxable entity which does not have the right to deduct the value added tax or has the right to a partial deduction, according to article 23, the operation shall be considered a delivery of goods, if the value added tax for such goods or their components is deducted entirely or in part.Article 4
(1) One shall consider a service provision any activity which does not constitute a delivery of goods for the purpose of article 3. Such operations can be:a) any physical or intellectual work;b) construction and assembly works;c) transport of passengers and commodities;d) services of post and telecommunications, radio and television transmissions;e) rental, lease and granting of movable assets or real estate;f) agent or commission operations;g) repairs of any kind;h) transfers and granting of royalties, patents, licenses, factory and trade marks, participation titles and other similar rights;i) advertising services;j) banking, financial, insurance and/or re-insurance operations;k) making personnel available;l) giving mandate;m) providing or yielding a clientele, exclusiveness over a sale or purchase;n) commitment not to exercise an economic activity or a right such as those mentioned under point h);o) arrangement of parking, storage and camping spaces;p) hotel and catering activities;r) providing access to communication networks and opportunities for using them;s) services provided by consultants, engineers, lawyers, notaries public, legal executors, auditors, certified accountants, study offices and other similar services, as well as data processing and supply;t) leasing operations.(2) The provision of certain services, based on an order issued by/on behalf of a public authority or in compliance with the law, shall be considered a service provision within the meaning of paragraph (1).(3) The following operations shall be classed as service provision:a) the use of goods which are part of the assets of the taxable entity for other purposes than those related to its economic activity of for being made available, for free use, to other natural or legal entities, if the value added tax for such goods has been deducted entirely or in part;b) the service provision, free of charge, carried out by the taxable entity for other purposes than those related to its economic activity, for the personal use of its employees or other persons, if the value added tax for such provisions has been deducted entirely or in part.(4) The use of goods and the service provision mentioned under paragraph (3), carried out within the limits and for the destinations stipulated in the law, shall not be considered similar to service provision.(5) The exchange of services takes the effect of two separate provisions, each of them being subject to taxation. In case of provision of a service by several taxable entities, by means of successive transactions, each transaction shall be seen as a separate provision and taxed distinctively, even if such service is provided directly to the final beneficiary.(6) The taxable entity which acts in its own name, but on behalf of another entity, taking part in service provision, shall be deemed to have received and provided those services itself.Article 5
By import of goods one shall understand the introduction in the country of goods coming from abroad by any entity, irrespective of its legal status, directly or by means of agents, placed in import customs procedure or in suspension customs procedures. Section 2 Place of taxable operationsArticle 6
(1) The place of a delivery of goods shall be considered to be in Romania when, according to the provisions of paragraphs (2) and (3), it is located on the Romanian territory.(2) The place of delivery shall be considered to be:a) the place where goods dispatch or transport to the beneficiary originated, whether the goods are dispatched or shipped by the supplier, the beneficiary, or third parties;b) the place where the goods are when the delivery takes place, if the goods are not dispatched or shipped.(3) Notwithstanding the provisions of paragraph (2) a), the place of goods delivery for the importer defined under article 13 (1) shall be considered to be located in Romania if the place where the dispatch or shipment originated is outside Romania, but the final destination is in Romania.(4) The deliveries and imports of goods for which the place of operation is considered to be in Romania shall be subject to the taxation procedure stipulated in the present law.Article 7
(1) The place of service provision shall be considered to be in Romania when the provider has the head office of its economic activities or a stable office from where services are provided or, in the absence of such an office, its domicile or regular residence in Romania, with the following exceptions for which the place of provision is:a) the place where the real estate assets are located, for the construction and assembly works done for making, repairing and maintaining real estate, irrespective of the location of the provider's office - in Romania or abroad. The same also shall apply to the rental of real estate, leasing operations having as their object the use of real estate, services of architecture, design, and construction work coordination, as well as the services provided by other taxable entities registered as value added tax payers operating in the field of real estate - studies, expert's investigations, repairs and other services provided by real estate agents;b) the place of departure of the transport of goods or passengers, and the place of arrival of the imported goods transport, respectively:1. for the transport of goods or passengers, the provision place shall be considered to be in Romania, if the place of departure of the transport is in Romania, no matter whether the place of transport arrival is in Romania or abroad;2. for the transport of goods originating abroad, the provision place is considered to be in Romania if the place of transport arrival is in Romania;c) the place where the beneficiary has its head office settled or, in its absence, its domicile. This category includes:1. the rental of tangible movable assets;2. leasing operations the object of which is the use of movable assets;3. transfers and/or grants of the royalty, patent, licenses, factory and trade marks, and other similar rights;4. advertising services;5. services by consultants, engineers, lawyers, notaries public, legal executors, auditors, certified accountants and other similar services;6. data processing and supply, making and/or supplying computer programs and/or computer program licenses;7. banking, financial, insurance and/or re-insurance operations;8. provision of personnel;9. provision by agents who intervene in the supply of the services stipulated under points 1-8;d) the place where the services are actually provided; this category includes the following activities:1. cultural, artistic, sporting, scientific, educational, entertaining or similar ones, including side services and those provided by the organizers of such activities;2. provisions related to transport, such as: loading/unloading means of transport, handling, security and/or storage of commodities and other similar services;3. expert's examinations of tangible movable assets;4. works performed on tangible movable assets.(2) The service provision for which the provision place is considered to be in Romania shall be subject to the taxation procedures stipulated in the present law. Section 3 Taxation proceduresArticle 8
(1) The taxable operations within the scope of the value added tax shall be classified, as regards the taxation procedures, as follows:a) taxable operations, to which the standard value added tax level is applied; the amount of the standard level is set up by the present law;b) operations exempted from the value added tax with deduction right, for which the suppliers and/or providers have the right to deduct the value added tax for the acquired goods and/or services, designed for the accomplishment of those operations; in the present law, such operations are stipulated under article 11 (1) and article 12;c) operations exempted from the value added tax without deduction right, for which the suppliers/providers do not have the right to the deduction of the value added tax for the purchased goods and/or services, designed for the accomplishment of such operations; in the present law, such operations are stipulated under article 9;d) import operations exempted from the value added tax; in the present law, such operations are stipulated under article 10.(2) The operations exempted from the value added tax shall be regulated by the law and their extension by analogy shall not be admissible.(3) The operations exempted from the value added tax payment by other laws than the present law shall be deemed exempted operations without the right to deduction unless the respective statutory instruments expressly stipulate the suppliers'/providers' possibility to exercise the right to deduction.(4) The operations taking place in free zones shall be subject to the taxation procedures and rules stipulated in the present law.(5) From the date of the present law coming into force the operations to which the application of zero level value added tax is stipulated by other laws in force shall be deemed exempt operations with the right to deduction.(6) It is prohibited to use the notion "zero level" in statutory instruments to be drawn up after the present law comes into force. Section 4 Exempt operations Subsection 1 Exemptions inside RomaniaArticle 9
(1) The following general-interest activities shall be exempted from the value added tax:a) hospitalisation, medical (including veterinary) care, and operations closely related to these, carried out by units authorized for such activities, irrespective of the organisation form and the holder of the ownership right, i.e.: hospitals, sanatoriums, rural or urban health centers, outpatient clinics, medical offices and laboratories, medical care and diagnostic centers, ambulance stations and other units authorized to carry out such activities, as well as canteens attached to such units. Exemption shall also be applied to boarding and treatment services provided on a cumulative basis by authorized taxable entities carrying out their activities in balneary and climatic resorts, and the value of which is discounted based on treatment tickets, as well as funeral services provided by hospitals;b) provision of professional services by dental technicians, as well as delivery of dental prostheses by dentists and dental technicians, irrespective of the organisation form and the holder of the ownership right;c) services of patient care and monitoring at their homes, provided by personnel specialised in medical and paramedical professions;d) deliveries of organs, blood, and human milk;e) education activity stipulated under article 15 (5) in Law on education No. 84/1885, republished, with subsequent modifications, carried out by units authorized by the Ministry of Education and Research and which are included in the national education system, as well as the purchase by these of technical documentation and construction materials designed for the state and private education, as well as instruments, equipment, publications and other materials for the teaching process. The canteens attached to the units included in the national education system, authorized by the Ministry of Education and Research, shall also be exempted;f) service provision and deliveries of goods closely related to social work and protection, carried out by public institutions, public-interest institutions, or other bodies acknowledged as having a social character;g) service provision and deliveries of goods closely related to child and youth protection, carried out by public institutions, public-interest institutions or other bodies acknowledged as having a social character;h) service provision and deliveries of goods supplied to the members in their collective interest, in exchange for a subscription set up according to the by-laws, by organizations without a patrimony purpose having political, trade-union, religious, patriotic, philosophical, charitable, or civic objectives, provided this exemption does not cause competition distortions;i) services closely related to the practice of sports or physical education provided by organisations without a patrimony purpose for the benefit of the persons who practise sports or physical education;j) provision of cultural services and deliveries of goods directly related to these, carried out by public institutions;k) service provision and deliveries of goods carried out by units the operations of which are exempted, according to points a) and e)-j), on the occasion of events meant to bring them financial support and organized for their sole profit, provided such exemptions do not cause competition distortions;l) making and broadcasting of radio and television programs, except for advertising;m) sale of films or licenses for films meant to be broadcast on television, except for advertising;n) transport of sick or injured persons in vehicles specially designed and authorized for that purpose.(2) Other operations exempted from the value added tax:a) research and development, and innovation activities for the accomplishment of the component programs, subprograms, projects, and topics of the National program of scientific research and technological development, as well as the actions listed in them, based on Government Ordinance No. 25/1995 on the regulation of the organization and financing of the research and development activity, approved and modified by Law No. 51/1996, with subsequent modifications and completions, or of the National research and innovation plan stipulated by Government Ordinance No. 8/1997 on stimulating scientific research, technological development and innovation, approved and amended by Law No. 95/1998, with subsequent modifications and completions. The research and development, and innovation activities, financed in international, regional, and bilateral partnership, shall also be exempted;b) deliveries of goods and/or service provision carried out by individual farmers;c) the following banking and financial operations:1. granting of credits, including granting of loans, by the partners/stockholders of trading companies, with a view to ensuring the financial resources of the company, as well as granting of loans by any natural or legal entity, under the terms stipulated by article 100 of title VI - Legal status of actual stock securities - of Law No. 99/1999 on some measures for accelerating the economic reform, with subsequent modifications;2. the operations stipulated under article 8 of the Banking Law No. 58/1998, with subsequent modifications and completions, performed by Romanian banks which are legal entities, Romanian branches of foreign banks which are legal entities, international financial-banking institutions, savings houses, mutual aid funds, credit cooperatives and other credit companies, currency exchange offices, as well as other legal entities authorized to carry out banking activities, except for the following operations: financial leasing operations, rental of safety deposit boxes, transactions on one's own account or on customers' account, with precious metals, objects made of them and/or gems, expert's reports in feasibility studies, consulting, patrimony assessment;3. specific operations carried out by the National Bank of Romania, expressly regulated by Law No. 101/1998 on the Statute of the National Bank of Romania, with subsequent modifications and completions. The purchases of gold, silver, other precious metals and gems, made by the National Bank of Romania from taxable entities registered as value added tax payers, shall not be exempted from the value added tax;4. operations of financial investments, financial agent services, stocks and related financial instruments, as well as other financial instruments;5. agent services in the investment of exchange securities and offering services related to this;d) administration of the joint investment funds and joint debenture funds created by the Fund for guaranteeing deposits in the banking system, the Romanian Fund for Guaranteeing Credits for Private Entrepreneurs - Joint-Stock Company, the Fund for Guaranteeing the Rural Credit - Joint-Stock Company, the National Fund for Guaranteeing Credits for Small and Medium-Sized Enterprises - Joint-Stock Company, as well as other bodies established for this purpose;e) insurance and re-insurance operations, as well as provision of services related to such operations carried out by agents in insurance operations;f) activities of gambling organization and operation, carried out by National Company "Loteria Rom�na" - Joint-Stock Company, and the tax payers authorized by the Gambling Coordination, Endorsement, and Certification Commission;g) deliveries of goods and/or provision of services carried out with inmates from the penitentiary system;h) construction, refurbishing, repair, and maintenance works carried out for monuments commemorating the service men, heroes, victims of war and of the December 1989 Revolution, as well as for museums, memorial homes, historical and architectural monuments;i) profits from entry fees to castles, museums, fairs and exhibitions, zoos and botanical gardens, libraries, as well as operations within the scope of the show tax;j) editing, printing and/or sale of school manuals and/or books, except for advertising;k) deliveries of any kind of prosthetic devices, their accessories, as well as orthopedic products;l) river transport of the inhabitants of the Danube Delta and for the routes Or�ova-Moldova Noua, Braila-H�r�ova, Gala�i-Grindu;m) sales of religious objects and clothing, printing of religious, theological or ecclesiastical books, necessary for the practice of religion, as well as those similar to religious objects, according to article 1 of Law No. 103/1992 on the exclusive right of religious cults to produce religious objects, with subsequent modifications;n) transfer of the ownership right over goods to the Agency for the Revaluation of Bank Assets as a result of the start of the payment for extinguishing the debtor's payment obligation, be it total or partial, according to the provisions of article 26 (2) in Government Emergency Ordinance No. 51/1998 on the revaluation of some bank assets, approved and modified by Law No. 409/2001, with subsequent modifications and completions.(3) The activities of the taxable entities with revenues from declared taxable operations or, as applicable, obtained annually, of up to 1.5 billion lei inclusive, shall be exempted from the value added tax. If revenues exceeding the limit of 1.5 billion lei during one fiscal year are obtained, the taxable entities must apply for their registration as value added tax payers, in accordance with the provisions of the laws in force. After their registration as value added tax payers, the taxable entities in question shall not benefit from the exemption even if, subsequently, they obtain revenues below the limit of 1.5 billion lei. The taxable entities registered as value-added tax payers, which in the year 2001 obtained revenues from taxable operations below the limit of 1.5 billion lei can apply for their removal from the records of the value added tax payers, under the terms set up by the norms for implementing the present law.(4) The taxation level of 1.5 billion lei set up in paragraph (3) is valid for the fiscal year 2002. From 1 January to 31 December 2003, the taxation level shall be the amount of 1.7 billion lei and from 1 January 2004 on, the taxation level shall be 2 billion lei.(5) The deliveries of goods which were exclusively designed for the accomplishment of operations exempted based on the present article, shall be exempted from the value added tax, provided the value added tax for such goods has not been deducted.(6) The taxable entities can choose to pay the value added tax for the operations stipulated under paragraph (3). Subsection 2 Exempt import operationsArticle 10
The following shall be exempted from the value added tax:a) imported goods meant for duty free sales, as well as through the exclusive shops for the diplomatic representation offices and their personnel;b) goods brought into the country by passengers or other natural entities residing in Romania or abroad, within the terms and limits established by Government Decision, according to the customs procedure applicable to natural entities;c) repairs and changes to Romanian ships and aircraft performed abroad, as well as fuels and other goods, supplied abroad, designed for the use on ships and/or aircraft;d) import of goods whose delivery is exempted from the value added tax inside Romania. The same procedure shall apply to services by providers having their head office or domicile abroad, for which the provision place is deemed to be in Romania, according to the provisions of article 7;e) film and program licenses, broadcasting rights, subscriptions to foreign news agencies and the like, meant for the radio and television activity;f) import of goods received free of charge as aids or donations designed for purposes such as humanitarian, social, charitable, religious, health protecting, cultural, artistic, educational, scientific, sporting, for environment protection and improvement, for protection and preservation of historical and architectural monuments, and imports of goods directly financed from unredeemable loans, granted to Romania by international institutions, foreign governments, and/or non-profit-making and charitable organizations, under the terms set up by the norms for implementing the present law;g) import of the following goods: samples without commercial value, advertising and documentary materials, goods of Romanian origin, foreign goods which, according to the law, become property of the Romanian state, goods repaired abroad or goods replacing those which were found inadequate from the quality point of view, returned to foreign partners within the warranty period, goods returning to Romania as a result of a mistaken dispatch, and environment protection equipment established by means of a Government Decision. Subsection 3 Exemptions for exports or other similar operations and for international transportArticle 11
The exemption from the value added tax shall apply to:a) export of goods, transport and service provision directly related to the export of goods, as well as the goods sold in duty free shops;b) international transport of passengers abroad and from abroad as well as the service provision directly related to it;c) transport of commodities and passengers, within and from the Romanian harbours and airports, with ships and aircraft under the Romanian flag, ordered by foreign beneficiaries;d) passage of the means of transport for commodities and passengers, using specialized river means of transport, between Romania and the neighbouring countries;e) transport, service provision related to transport, as well as other service provision related to import commodities whose value is included in the taxation pool according to article 19 (1) and (2);f) deliveries of goods meant to be used on ships and aircraft or included in ships and aircraft which perform international transport of passengers and commodities;g) service provision in airports related to aircraft in international traffic, as well as service provision in harbours related to international rivers and sea-going trading ships;h) repairs to transport means contracted with foreign beneficiaries;i) other service provision performed by taxable entities having their head office in Romania, contracted with foreign beneficiaries, under the terms stipulated by the norms for implementing the present law;j) service provision for ships owned by navigation companies carrying out their activity with the special marine status, or operated by them, as well as deliveries of ships as a whole to such companies;k) deliveries of goods and service provision for the direct benefit of diplomatic missions and consular offices, as well as their personnel, on a mutual basis; deliveries of goods and service provision for the direct benefit of intergovernment international representation offices accredited to Romania, as well as their personnel;l) goods purchased from exhibitions organized in Romania, as well as from the commercial network, dispatched or shipped abroad by the buyer who does not have his domicile or residence in Romania;m) deliveries of goods and service provision financed from unredeemable aids or loans granted by foreign governments, international institutions, and foreign and Romanian non-profit-making and charitable organizations, including from donations by natural entities;n) construction, expansion, rehabilitation, and consolidation of religious buildings;o) deliveries of plants, equipment, and service provision directly related to petroleum operations, carried out by the holders of petroleum agreements, who are foreign legal entities, based on the Law on petroleum No. 134/1995;p) deliveries of plants, equipment, and service provision related to the investment project "Development and Upgrading of Bucharest-Otopeni International Airport";r) service provision by agents operating in the name or for the account of someone else, when they intervene in the operations stipulated in the present article.(2) For the operations stipulated under paragraph (1) a)-c), e)-g), i) and r), the exemption must be justified on the basis of the documents shown in the norms for implementing the present law.(3) For the operations stipulated under paragraph (1) k)-p), the implementation of the exemption is achieved under the terms set up by order of the minister of public finance.(4) For dwelling construction works, expansion, consolidation and rehabilitation of existing dwelling buildings, unfinished on the date of the present law coming into force, the reimbursement of the value added tax for the period during which they benefited from the application of zero level, according to the provisions of article 17 B.n) of Government Emergency Ordinance No. 17/2000 on the value added tax, with subsequent modifications, shall take place according to the procedure set up by order of the minister of public finance. Subsection 4 Special exemptions related to international goods trafficArticle 12
The following operations shall be exempted from the value added tax, provided they do not lead to final usage and/or consumption:a) the active improvement operations stipulated under chapter VII, section IV of Law No. 141/1997 on the Customs Code of Romania;b) the goods made in active improvement procedure according to the provisions of chapter VII, section IV, article 111 (1) a) of Law No. 141/1997, by taxable entities with head office in Romania, contracted with foreign beneficiaries and which, by the order of the latter, are delivered to customs warehouses on the Romanian territory;c) introduction into the country of goods placed in a suspension customs procedure with full exemption from the payment of import rights, according to the provisions of the Customs Code of Romania;d) introduction of goods into the free zones directly from abroad, for their mere storage, without preparing customs formalities;e) introduction of goods into the free zones directly from abroad, as well as their selling/purchasing trade operations between various operators within the perimeter of the free zones and which, subsequent to such operations, leave the territory of the free zones with a foreign destination, in the same condition, without customs declarations being prepared;f) service provision directly related to the operations stipulated under points a)-e).Chapter 2 Entities bound to pay the value added taxArticle 13
(1) The value added tax due to the state budget shall be paid by:a) taxable entities registered as value added tax payers, for taxable operations;b) holders of goods import operations carried out directly, by means of commission agents, or third legal entities who act in the name and by order of the holder of the import operation, whether they are or are not registered with the tax authorities as value added tax payers, except for the imports exempted according to article 10;c) natural entities, for the goods brought into Romania according to the customs regulations applicable to them;d) legal or natural entities with head office or domicile in Romania, beneficiaries of the service provision stipulated under article 7 (1) c), carried out by providers with head office or domicile abroad, except for those exempted from the value added tax, whether they are or are not registered with the tax authorities as value added tax payers.(2) If the entity carrying out taxable operations does not have its head office or domicile in Romania, this must designate a tax representative residing in Romania, who undertakes to fulfill his obligations according to the provisions of the present law.(3) The beneficiaries of service provision for whom the place of the service provision is deemed to be in Romania, according to the territorial application criteria set up under article 7 are bound to pay the value added tax if the foreign providers have not complied with the obligation to designate a tax representative residing in Romania.Chapter 3 Generating fact and payability of value added taxArticle 14
The fact generating the value added tax starts at the time of the delivery of goods and/or service provision, except for the cases stipulated in the present law.Article 15
For the operations stipulated below, the fact generating the value added tax starts on:a) the date of customs declaration registration, for imported goods;b) the date of receiving the foreign invoice for services contracted by taxable entities from Romania with service providers having their head office or domicile abroad, for which the place of provision is deemed to be in Romania;c) the date of foreign provider's payment, in the case of payments made without invoice for services contracted by taxable entities from Romania with service providers having their head office or domicile abroad, for whom the place of provision is deemed to be in Romania;d) the date on which the goods placed in a suspension customs procedure are placed in an import procedure;e) the date of establishing the debt based on invoice for service provision which give way to successive discounts or payments, which are deemed to have been completed at the time of expiry of the periods related to such discounts or payments;f) the date of goods sale to the beneficiaries, in the case of operations carried out by means of agents or on consignment;g) the date of issuing the documents recording the take-over by taxable entities of goods purchased or manufactured by the latter in order to be used for purposes which are not connected with the economic activity carried out by them or to be placed at the disposal of other natural or legal entities free of charge;h) the date of the documents acknowledging the provision of services by taxable entities for purposes which are not connected with the economic activity carried out by them or for other natural or legal entities free of charge;i) the date of collecting the coins for the commodities sold by means of automatic vending machines;j) the deadlines for the payment of the instalments stipulated in contracts for leasing operations.Article 16
(1) Payability is the right of the tax authority to require from the value added tax payer, on a given date, the payment of the tax due to the state budget.(2) Payability shall start at the same time with the generating fact, except for the cases stipulated by the present law.(3) For deliveries of goods with instalment payment, the payability of the value added tax shall start on the date stipulated for the payment of instalments.(4) The payability of the value added tax shall be anticipated by the generating fact when:a) the fiscal invoice is issued before the delivery of goods or service provision;b) the value of the goods or services is cashed in before the delivery of goods or service provision;c) advance payments are cashed in, except for advance payments granted for:1. the payment of the imports and the customs debt established in compliance with the law;2. the accomplishment of the production to be exported;3. making payments on behalf of the customer;4. deliveries of goods and services provisions exempted from the value added tax.(5) For the deliveries of goods and/or service provision taking place continually - electrical power, heating power, natural gas, water, telephone services, and the like - the payability of the value added tax shall start on the date of establishment of the beneficiary's debt based on a fiscal invoice or some other legal document.(6) The payability of the value added tax related to the advance payments cashed in by taxable entities registered as value added tax payers, which have won bids for completing projects financed from credits granted by the international financial institutions to the Romanian state or guaranteed by it, shall start on the date of invoicing the work reports.(7) The payability of the value added tax related to the amounts established as security for covering possible complaints about the quality of construction and assembly works shall start on the date of conclusion of the final reception report or, as applicable, on the date the amounts are cashed in, if the cashing takes place before the report.(8) The payability of the value added fax for real estate works shall start on the date of cashing in the advance payments based on work reports, but the contractors can choose to pay the value added tax on the date of delivery, under the terms set up by the norms for implementing the present law.Article 17
For deliveries of industrial machines, transport means for productive activities, technological units, plants, equipment, measuring and control instruments, automations and software products, which were manufactured one year at most before sale and have never been used, the payability of the value added tax shall be postponed under the following conditions:a) for the period of investment completion, until it is commissioned, i.e. by the date of 25th of the month following the date of investment commissioning, but no later than 12 months after the date of investment beginning, when such deliveries are made to small and medium-sized enterprises, as defined in Law No. 133/1999 on stimulating private entrepreneurs to establish and develop small and medium-sized enterprises, with subsequent modifications, as well as to trading companies with majority private capital, Romanian legal entities, to natural entities and family firms authorized according to Decree-law No. 54/1990 on the organization and operation of economic activities based on free enterprise, with subsequent modifications, which have their head office and carry out their activity in the depressed area, with a view to making investments in depressed areas;b) for the period of investment completion, until its commissioning, i.e. by the 25th of the month following the date of investment commissioning, but no later than 30 months after the date of statistical registration with the Ministry of Development and Prognosis, when such deliveries take place to taxable entities which make investments complying with the provisions of Law No. 332/2001 on the promotion of direct investments of significant impact in the economy.(2) The postponement of the payability of the value added tax, stipulated under paragraph (1), shall be done as follows:a) the beneficiaries stipulated under paragraph (1) must pay, on behalf of the supplier, the value added tax directly to the state budget, within the time limits stipulated. The tax paid up shall become deductible and enters in the value added tax expense account of that month. The debt to the supplier shall be diminished accordingly with the amount paid to the state budget. If the beneficiaries do not pay the value added tax to the state budget within the time limits stipulated under paragraph (1), they shall be obliged to pay delay fines in the amount established for the failure to pay their dues to the state budget;b) the suppliers shall record as non-exigible tax the value added tax related to the deliveries stipulated under paragraph (1), for which they shall have no other payment obligation to the state budget. The tax shall become exigible in the month when the beneficiaries pay the respective value added tax to the state budget, but the suppliers shall lower accordingly the amount of the tax collected to the state budget and, at the same time, the beneficiaries' debt recorded in the customers' accounts. The suppliers shall not be obliged to pay delay fines for the beneficiaries' failure to pay in time the amounts representing the value added tax whose payability has been postponed.(3) The certification of the right to postpone the payability of the value-added tax shall be done under the terms established by order of the minister of public finance.(4) The provisions of the present article shall only apply if the beneficiaries of the deliveries stipulated under paragraph (1) are registered as value added tax payers with the tax authorities.Chapter 4 Tax base Section 1 Inside RomaniaArticle 18
(1) The tax base of the value added tax shall consist of:a) for deliveries of goods and/or service provision, other than those stipulated under points b) and c), of everything that makes up the compensation obtained or which is to be obtained by the supplier or service provider from the buyer, beneficiary, or a third party, including subsidies directly related to the price of such operations, except for the value added tax;b) the purchase prices or, in their absence, the cost, established at the time of delivery/provision, for the operations stipulated under article 3 (4) and article 4 (3);c) the compensation for the operations stipulated under article 3 (3) and article 4 (2).(2) The following shall be included in the tax base:a) taxes, dues, unless the law stipulates otherwise, except for the value added tax;b) side expenses such as: commissions, packing, transport, and insurance expenses, discounted to the buyer or customer.(3) The following shall not be included in the tax base:a) sales allowances and other price reductions granted by suppliers directly to customers with a view to stimulating sales, under the terms stipulated in the contracts concluded;b) penalties, as well as sums representing damages ordered by a final court decision, requested for the complete failure to comply with or the partial compliance with contract obligations;c) interests charged for: late payments, instalment sales, leasing operations;d) amounts paid by the supplier or service provider on the customer's account and then charged to the latter;e) packing articles which circulate between the commodity suppliers and customers, in exchange, without invoicing.(4) The tax base shall be reduced adequately:a) in the event of full or partial refusals concerning the quantity, prices, or other elements included in invoices or in other legally approved documents, as well as in the event of returns of up to 15% of the written press;b) when the price reductions stipulated under paragraph (3) a) are granted according to the contracts concluded after the delivery of goods or service provision;c) when the buyers return the packing articles in which the commodity was dispatched, for packing articles which circulate by invoicing. Section 2 For imported goodsArticle 19
(1) For the goods imported, the tax base shall comprise the customs value, established according to the law, adding to customs duties, customs commission, excises, and other dues according to the law.(2) As long as they have not been included in the tax base established according to paragraph (1), the tax base shall include side expenses such as: commissions, packing, transport, and insurance expenses which become applicable after the good enters the country and up to the first place of goods destination.(3) By first place of destination one shall understand the place stated in the shipment document accompanying the goods when entering the country.(4) The tax base shall not include the elements stipulated under article 18 (3) a)-c) and e).(5) If the elements which serve for establishing the tax base on import are expressed in a foreign currency, the exchange rate at which the evaluation takes place shall be the one set for the calculation of the customs value.Chapter 5 Tax brackets and calculation of the value added taxArticle 20
(1) In Romania, the standard level of the value added tax is 19% and shall apply to taxable operations, except for those exempted from the value added tax.(2) The applicable value added tax brackets shall be the one in force on the date the fact generating the value added tax starts.(3) For those cases where the payability of the value added tax does not coincide with the generating fact, stipulated under article 16 (3)-(6), the brackets in force on the date the tax becomes exigible shall apply. For the operations stipulated under article 16 (4), if brackets should be changed, one shall proceed to an adjustment so that the brackets in force on the date the fact generating the value added tax starts are applied. The adjustment shall be done by fully re-invoicing the value of the deliveries of goods and/or service provision with the brackets in force on the date the generating fact starts, and by deducting the previously invoiced sums within the same invoice.Article 21
(1) The value added tax shall be calculated by applying the standard level to the tax base established under the terms stipulated in chapter IV.(2) Notwithstanding the provisions of paragraph (1), the value added tax shall be calculated by applying the recalculated brackets, established according to the methodology set up by the norms for implementing the present law, to:a) the amounts obtained from the sale of goods sold by retail trade - shops, consignment shops, restaurants, canteens, or other units having direct contact with the population, the prices of which also comprise the value added tax;b) the amounts obtained from some services provision - transport, post, telephone, telegraph, and the like - the tariffs of which also comprise the value added tax;c) the amounts obtained from selling goods by auction, by assessment or by expert valuation, as well as for other similar situations;d) the compensation for the transfer of the ownership right over some goods from the patrimony of taxable entities to the public domain, under the terms stipulated by the legislation concerning public property and its legal status.Chapter 6 Deductions systemArticle 22
(1) The deduction right shall start when the deductible value added tax becomes exigible.(2) Notwithstanding the provisions of paragraph (1), for the operations stipulated below the deduction right shall start:a) on the date of the actual payment or, as applicable, on the date of the compensation with the value added tax to be reimbursed from the previous month's discount, for imported goods which benefit from the suspension of the value added tax payment in customs, stipulated under article 29 D.c);b) on the date of the actual payment or, as applicable, on the date of the compensation with the value added tax to be reimbursed from the previous month's discount, for service provision stipulated under article 29 D.d)-f);c) on the date of the actual payment to the state budget for the operations stipulated under article 17.(3) The right to deduct the value added tax shall only be granted to taxable entities registered with the territorial tax authorities as value added tax payers.(4) The taxable entities registered as value added tax payers shall have the right to deduct the value added tax related to the goods and services designed for carrying out:a) taxable operations;b) deliveries of goods and/or service provision exempted from the value added tax stipulated under article 11 (1) and article 12;c) sponsoring, advertising, and protocol activities, as well as for other actions stipulated in the laws, observing the limits and destinations stipulated in them;d) operations resulting from economic activities stipulated under article 2 (2), carried out abroad, which would give the right to deduction if such operations were carried out inside Romania;e) operations stipulated under article 3 (6) and (7), if the value added tax were applicable to that transfer.(5) The value added tax stipulated under paragraph (4) that an entity has the right to deduct shall be:a) the value added tax due or paid, related to the goods which have been or are to be delivered to it, and for services which have been or are to be provided to it by another taxable entity as a value added tax payer;b) the value added tax paid, for the imported goods stipulated under article 29 D.b);c) the value added tax paid or compensated with the tax to be reimbursed from the previous month's discount, for import goods which benefit from the suspension of the tax payment in customs stipulated under art. 29 D.c);d) the value added tax paid or compensated with the tax to be reimbursed from the previous month's discount, for the service provision stipulated under article 29 D.d)-f);e) the value added tax paid by the beneficiary on behalf of the supplier, for the operations stipulated under article 17.(6) The goods and services purchased with a view to carrying out the operations stipulated under paragraph (4) shall comprise the raw materials and materials, fuel and energy, spare parts, inventory objects and the ones similar to fixed assets, as well as other goods and services to be reflected in production, investment, or circulation expenses, as applicable.Article 23
(1) The right to deduct the value added tax related to the goods and/or services which are used by a taxable entity for carrying out both the operations which give the right to deduction and the operations which do not give the right to deduction shall be determined based on the degree of use of such goods and/or services in completing the operations which give the right to deduction.(2) The manner in which the degree of use of the goods and/or services in completing the operations which give the right to deduction is determined shall be set up by the norms for implementing the present law.Article 24
(1) In order to exercise the right to deduct the value added tax, any taxable entity must justify the tax amount with the following documents:a) for the deduction stipulated under article 22 (5) a), with fiscal invoices or other legally approved documents, issued to its name, by other taxable entities registered as value added tax payers;b) for the deduction stipulated under article 22 (5) b), with the import customs declaration or the document drawn up by the customs authorities;c) for the deduction stipulated under article 22 (5) c), with the customs declaration issued to its name and the document which confirms the payment of the value added tax or, in the event of a compensation, the value added tax discount for the previous month, which shows the tax to be reimbursed, and the accounting note based on which the compensation was made;d) for the deduction stipulated under article 22 (5) d), with the document which confirms the payment of the value added tax or, in the event of a compensation, the value added tax discount for the previous month, which shows the tax to be reimbursed, and the accounting note based on which the compensation was made;e) for the deduction stipulated under article 22 (5) e), with fiscal invoices or other legally approved documents, issued to its name, by other taxable entities registered as value added tax payers and the document which confirms the payment of the value added tax.(2) The value added tax cannot be deducted for entries referring to:a) operations which are not connected with the economic activity of the taxable entities;b) goods/services purchased by suppliers/providers on behalf of their customers and who, subsequently, are charged to the latter;c) transport, hotel, restaurant, and similar services, provided for taxable entities that carry on intermediation activities in tourism;d) spirits and tobacco products meant for protocol activities;e) goods which are found missing or qualitatively depreciated during transport, and which cannot be ascribed to someone, based on the documents prepared for the handover/receipt of the goods from the transporter and for their recording in the administration of the taxable entity.(3) The value added tax for the purchased goods and services, designed to achieve one's own investment projects and for special-destination stocks of products financed from the amounts cashed in from the state budget or the local budgets by taxable entities registered with the tax authorities as value added tax payers, shall be deducted according to the provisions of article 22. The value added tax deducted for the achievement of one's own investment projects shall be used for restoring the available investment funds in a compulsory manner. The amounts deducted during the fiscal year for one' own investment projects can only be used for payments related to the same investment project for which the allowances from the state budget or local budgets were received. At the end of the financial year, the amounts deducted and unused shall be transferred to the state budget or to the local budgets, to the accounts and within the time limits set up by the annual methodological norms on the closure of the financial-budgetary and financial-accounting year, issued by the Ministry of Public Finance. The units which, at the end of the year, have a reimbursable tax, resulting from the value added tax discount, can compensate that tax with the amounts deducted and unused due to the state budget or local budgets for the operations stipulated in this paragraph.Article 25
(1) The deduction right shall be exercised each month by subtracting the deductible tax from the amount representing the value added tax invoiced for the goods delivered and/or services provided, called collected tax.(2) The exercise of the deduction right shall not take place for each operation, but for all the operations completed during one month.(3) The value added tax due to the state budget shall be established monthly based on discounts of the value added tax payers, as the difference between the collected tax and the tax deducted according to the law. If the tax deducted according to the law is higher than the collected tax, the reimbursable tax results, and if the collected tax is higher than the tax deducted according to the law, the tax to be paid to the state budget results.Article 26
(1) The reimbursable tax for the reporting month established in the value added tax discount according to article 25 (3) shall be regulated in the following sequence:a) through the compensation made by the taxable entity within the limits of the tax left to be paid resulting from the previous month's discount or from the next months' discounts, as applicable, without the notice of the tax authorities, when preparing the value added tax discounts;b) through compensation with other taxes and dues due to the state budget by the taxable entity, performed ex officio by the tax authorities or, as applicable, at the express request of the taxable entity, within 30 days from the date of submitting the compensation application;c) reimbursement made by the tax authorities.(2) The payable tax established by the value added tax discount according to article 25 (3) shall be paid to the state budget within the time limit stipulated under article 29 D.a).Article 27
(1) The reimbursement of the tax difference, left after the compensation made according to article 26 (1) and after subtracting the tax corresponding to the unpaid amounts in suppliers'/providers' invoices, shall be made by the territorial tax authorities, within 30 days from the date of submitting the reimbursement application, based on the documents stipulated by order of the minister of public finance and on the audits performed by the tax audit bodies.(2) Notwithstanding the provisions of paragraph (1), the territorial tax authorities shall make, at the request of the taxable entities complying with the terms set up by the norms for implementing the present law, value added tax reimbursements, within 15 days from the date of submitting the reimbursement application, with the subsequent audit of the documents stipulated under paragraph (1), i.e. every six months.(3) The reimbursement of the value added tax can be applied for every month.(4) In view of solving the reimbursement applications, the tax audit authorities must determine the value of the deductible tax corresponding to the unpaid amounts in the Romanian suppliers'/providers' invoices, for which the taxable entities do not benefit from the actual reimbursement of the amounts from the state budget. Payment, according to the present law, means any manner of extinguishing the obligations towards suppliers/providers.(5) The taxable entities which benefit from the reimbursement of the value added tax, according to paragraph (2), must determine and declare under oath the value of the deductive amount corresponding to the unpaid amounts in the Romanian suppliers'/providers' invoices, for which they do not benefit from the actual reimbursement of the amounts from the state budget. On the occasion of the documents' audit within the time limits set up in the norms for implementing the present law, the tax audit authorities must check the accuracy of the data in the affidavit.Article 28
The norms for implementing the present law establish the terms under which, for the reimbursements of the value added tax, the tax audit authorities of the Ministry of Public Finance can request the establishment of personal or joint guarantees, according to the law.Chapter 7 Obligations of the value added tax payersArticle 29
The taxable entities which carry out taxable operations and/or exempted operations with deduction right have the following obligations:A. As regards the registration with the tax authorities:a) at the beginning of activity, as well as in the cases and under the terms stipulated by the present law, the taxable entities must register as value added tax payers, observing the procedures for the fiscal registration of tax payers;b) they must apply with the tax authority for their removal from the register of the value added tax payers, in the event of termination of their activity, within 15 days from the date of the lawful document which records such a condition.B. As regards the documents:a) they shall record the deliveries of goods and/or service provision in fiscal invoices or other legally approved documents and fill out, in a mandatory manner, the following data: the denomination, the address and fiscal code of the supplier/provider and, as applicable, of the beneficiary, the date of issuing, the denomination of the goods delivered and/or services provided, the quantities, as applicable, the unit price, the value of the goods/services without value added tax, the amount of the value added tax. For the deliveries of goods or service provision with a value added tax value exceeding 50 million lei, such documents shall also be accompanied by a copy of the lawful document which attests to the status of value added tax payer;b) the taxable entities paying value added tax must request the suppliers/providers to issue fiscal invoices or lawfully approved documents and check if they are properly prepared, and for operations with a value added tax amount exceeding 50 million lei, they must also request a copy of the lawful document which attests to the supplier's/provider's status of value added tax payer. The receipt and registration, in the accounting records, of fiscal invoices or other lawfully approved documents which do not contain the data stipulated to be filled out in a mandatory manner under point a), as well as the absence of the copy of the lawful document attesting to the supplier's/provider's status of value added tax payer, in the event of purchases with a value added tax amount exceeding 50 million lei inclusive, shall cause the loss of the right to deduct the related value added tax;c) the taxable entities registered as value added tax payers shall not be obliged to issue fiscal invoices for the following operations:1. taxi transport, as well as passenger transport based on fares and subscriptions;2. sales of goods and /or service provision recorded in specific documents approved according to the laws in force;3. sales of goods and/or service provision to the population based on documents without nominating the buyer. At the buyers' request, the suppliers/providers may issue fiscal invoices mentioning: the amount cashed in, and the number and date of the document by means of which the beneficiary has made the payment;d) the importers shall prepare the import customs declaration, directly or by means of their authorized representatives, determine the tax base for the imported goods according to article 19, and calculate the value added tax due to the state budget.C. As regards operations records:a) to keep the books according to the law, so as to be able to determine the tax base and the collected value added tax for the deliveries of goods and/or service provision carried out, as well as the deductible one related to entries;b) to provide the necessary conditions for document issuing, data processing, and management of the records stipulated by the regulations in the field of the value added tax;c) to prepare and submit each month, to the tax authority, by the date of 25 of the following month inclusive, the discount concerning the value added tax, according to the model established by the Ministry of Public Finance;d) to supply the tax authorities with all the necessary documents with a view to determining the operations carried out both at the head office and the secondary offices;e) to keep distinct records of the revenues and expenses resulting from the operations of the particular partnerships. The lawful rights and obligations concerning the value added tax belong to the partner who keeps the records of the revenues and expenses according to the contract concluded between the parties. At the end of the reporting period, the revenues and expenses, recorded per type, shall be sent to each partner, based on a discount, so that they can be recorded in their own account books. The amounts settled between the parties without complying with these provisions shall be subject to the value added tax at the brackets stipulated by the law.D. As regards the payment of the value added tax:a) to pay the due value added tax, according to the discount received monthly, by the 25th of the following month inclusive;b) to pay the value added tax related to the goods placed in a procedure of import, to the customs authorities, except for import operations exempted from the value added tax;c) Notwithstanding the provisions of point b), the payment of the value added tax to the customs authorities shall be suspended for:1. industrial machines, means of transport designed for productive activities, technological units, plants, equipment, measuring and control instruments, automations, which were manufactured one year at most before their entry in Romania and have never been used, imported by small and medium-sized enterprises as defined by Law No. 133/1999 on stimulating private entrepreneurs to establish and develop small and medium-sized enterprises, with a view to making investments, for the period of investment implementation, until it is commissioned, but not later than 12 months from the start of the investment;2. industrial machines, technological units, plants, equipment, measuring and control instruments, automations, means of transport designed for productive activities, which were manufactured one year at most before their entry in Romania and have never been used, imported by trading companies with majority private capital, which are Romanian legal entities, as well as natural entities and family firms authorized according to Decree-law No. 54/1990, with subsequent modifications, which have their head office and carry out their activity in the depressed area, in view of making investments in the depressed areas, for the period of investment implementation, until it is commissioned, but not later than 12 months from the start of the investments;3. industrial machines, technological units, plants, equipment, measuring and control instruments, automations, means of transport designed for productive activities, which were manufactured one year at most before their entry in Romania and have never been used, imported by taxable entities that make investments complying with the provisions of Law No. 332/2001 on the promotion of direct investments of significant impact in the economy, for the period of investment implementation, until it is commissioned, but not later than 30 months from the date of its statistical registration with the Ministry of Development and Prognosis;4. industrial machines, technological units, plants, equipment which are imported for the implementation and progress of investments used for building a new productive unit, developing the existing capacities, or upgrading factories, departments, workshops, as well as for agricultural machines, for a 120 days' time limit from the date of import. Also, the payment of the value added tax to the customs authorities is suspended for 60 days, for raw materials which are not produced in Romania or for which there is shortage, imported in view of implementing the object of activity. The approval of the right to benefit from the suspension of the value added tax payment in customs for the imports stipulated under points 1-4 is granted under the terms set up by order of the minister of public finance;d) to pay the value added tax related to leasing operations, corresponding to the amounts and payment deadlines stipulated in the contracts concluded with foreign investors/lenders. The value added tax for such operations shall also be paid by the entities, irrespective of their legal status, that are not registered as value added tax payers. If, upon the expiry of the leasing contract, the goods having made its object are transferred to the beneficiary's ownership, the value added tax is due for the amount at which the ownership transfer of such goods is made;e) to pay the value added tax related to the services contracted with providers having their head office or domicile abroad, for which the provision place is deemed to be in Romania, according to article 7 (1) c), except for the leasing operations contracted with foreign lessors/lenders, which are regulated under point d), within 7 days from the date of receipt of the foreign invoice. As regards the payments made without invoice, the value added tax shall be paid at the same time as the payment to the foreign provider. The value added tax related to such operations shall also be paid by entities, irrespective of their legal status, which are not registered as value added tax payers;f) to pay, within 7 days from the date of receipt of the foreign invoice, the value added tax related to the services contracted with providers having their head office or domicile abroad, for whom the provision place is deemed to be in Romania, according to article 7 (1) a), b) and d), unless the service provider has designated a fiscal representative in Romania. The value added tax related to such operations shall also be paid by entities, irrespective of their legal status, which are not registered as value added tax payers;g) to pay the value added tax due to the state budget, prior to the date of submitting the application to the tax authority for their removal from the register as value added tax payers, should they terminate their activity;h) in the case of taxable entities registered as value added tax payers, if the amount to be reimbursed results from the discount concerning the value added tax for the previous month, they shall have the right to compensate this amount with the amount due according to the provisions of points c)-f).Chapter 8 Final provisionsArticle 30
The specimen and contents of the fiscal invoice forms or other lawfully approved documents, purchase logs, sales logs, daily sales/purchase dockets, and other necessary documents in view of implementing the provisions of the present law shall be established by the Ministry of Public Finance, and are mandatory for the value added tax payers.Article 31
(1) Corrections to the value added tax determined in an erroneous manner, written down in fiscal invoices or other lawfully approved documents, by the taxable entities registered as value added tax payers shall be made as follows:a) if the document has not been sent to the beneficiary, it shall be cancelled and another document shall be issued;b) if the document has been sent to the beneficiary, the correction of errors is made by issuing a new document with the values preceded by the minus sign, mentioning the number of the corrected document and, at the same time, that a new correct document is being issued. The documents in question shall be recorded in the sales and purchase log, respectively, and shall be included as such in the discounts prepared by the supplier and beneficiary, respectively, for the month when the correction took place.(2) The reduction of the tax base stipulated under article 18 (4) shall be made by means of the suppliers of goods and/or service providers issuing new documents with the value being preceded by the minus sign, which shall also be sent to the beneficiary. Such documents shall be recorded in the sales, and purchase log, respectively, and included as such in the discounts prepared by the supplier and beneficiary, respectively, for the month when the reduction was made.Article 32
(1) The tax audit authorities shall have the right to perform checks and investigations with the entities which must pay the value added tax in connection with the compliance with the present law, including the bookkeeping records. For this purpose, the taxable entities must produce the records and related documents.(2) If, following the checks performed, errors or departures from the provisions of the law result, the tax audit authorities must establish the level of the deductible and invoiced value added tax.(3) If the fiscal invoices, bookkeeping records, or data necessary for calculating the tax base are missing or are incomplete as regards the quantities, prices and/or tariffs charged for deliveries of goods and/or service provision, the tax base authorities shall proceed to an estimated taxation.Article 33
For the failure to pay the full amount or a difference from the value added tax within the set time limit, the taxable entities shall owe delinquent taxes and penalties calculated according to the legislation on the calculation and payment of amounts due for the failure to pay taxes in due time.Article 34
The audit documents issued by the specialized authorities of the Ministry of Public Finance for finding the value added tax liabilities shall represent debentures which become writs of execution according to the provisions of the law.Article 35
(1) The failure to comply with the provisions of articles 29 and 30 shall be punished according to Law No. 87/1994 on the control of tax evasion.(2) The late submission of the value added tax discount shall be punished according to the provisions of Government Ordinance No. 68/1997 on the procedure for preparing and submitting tax declarations, approved and modified by Law No. 73/1998, republished, with subsequent modifications and completions.Article 36
The determination, in bad faith, by the taxable entities, of the value added tax value to be reimbursed and thus the obtaining of amounts of money from the tax authorities shall be seen as a breach of the law and shall be punished with prison from 1 to 7 years.Article 37
The settlement of the disputes concerning the value added tax amounts, found and applied through the audit or taxation documents by the authorities of the Ministry of Public Finance, shall be in accordance with the provisions of the laws in force.Article 38
In view of an equal implementation of the provisions of the law on the value added tax, within the Ministry of Public Finance a Fiscal Central Commission shall be established, led by the state secretary in charge of fiscal policy and legislation. The commission's composition and attributions shall be approved by order of the minister of public finance. The decisions of the Fiscal Central Commission shall be published in the Official Gazette of Romania, Part I.Article 39
Within 15 days from the date of the present law coming into force, the Government, following the proposal of the Ministry of Public Finance, shall approve the norms for implementing the present law.Article 40
The present law shall come into force on 1 June 2002, except for the provisions of article 27 (2), which shall come into force on 1 October 2002. On the date of the present law coming into force, the following shall be abrogated:a) Government Emergency Ordinance No. 17/2000 on the value added tax, published in the Official Gazette of Romania, Part I, No. 113 of 15 March 2000, approved and modified by Law No. 547/2001;b) the provisions of article 5 concerning the exemption from the value added tax of Law No. 103/1992 on the exclusive right of religious faiths to produce religious objects, published in the Official Gazette of Romania, Part I, No. 244 of 1 October 1992, with subsequent modifications;c) the provisions concerning the exemption from the value added tax of article 42 (1) for the financing sources stipulated under article 33 (1) c) of the Law of political parties No. 27/1996, published in the Official Gazette of Romania, Part I, No. 87 of 29 April 1996, with subsequent modifications;d) the provisions of article 37, indents 3 and 4, of Government Ordinance No. 30/1995 on the lease of the construction and operation of parts of terrestrial communication lines - highways and railways, published in the Official Gazette of Romania, Part I, No. 203 of 1 September 1995, approved and modified by Law No. 136/1996, with subsequent modifications;e) the provisions of article 173 (3) of the Law on education No. 84/1995, republished in the Official Gazette of Romania, Part I, No. 606 of 10 December 1999, with subsequent modifications;f) the provisions of article 4 (2), concerning the value added tax, of Law No. 118/1996 on the establishment and use of the Special Fund for Public Roads, republished in the Official Gazette of Romania, Part I, No. 150 of 15 April 1998, with subsequent modifications;g) the provisions of article 4 (2) concerning the exemption from the value added tax of Government Emergency Ordinance No. 43/1997 for preparing the special balance sheet and the adjustment of certain credits and interests classified as "losses" with Banca Agricola - S.A., published in the Official Gazette of Romania, Part I, No. 153 of 14 July 1997, approved and modified by Law No. 166/1998, with subsequent modifications;h) the provisions of article 3 a), article 4 and article 5 (1) of Government Ordinance No. 8/1998 on the establishment and use of the special fund for tourism promotion and development, published in the Official Gazette of Romania, Part I, No. 40 of 30 January 1998, approved and modified by Law No. 23/2000, with subsequent modifications;i) the provisions of article 7 of Government Ordinance No. 116/1998 on the establishment of the special procedure for the international sea transport activity, published in the Official Gazette of Romania, Part I, No. 326 of 29 August 1998, with subsequent modifications;j) the provisions of article 6 (1) a) of Government Emergency Ordinance No. 24/1998 on the status of depressed areas, republished in the Official Gazette of Romania, Part I, No. 545 of 8 November 1999, with the subsequent modifications;k) the provisions of article 76 concerning the exemption from the value added tax of the Law on physical education and sports No. 69/2000, published in the Official Gazette of Romania, Part I, No. 200 of 9 May 2000, with subsequent modifications;l) the provisions of article 26 (2) concerning the exemption from the value added tax of Government Emergency Ordinance No. 51/1998 on the valuation of certain bank assets, published in the Official Gazette of Romania, Part I, No. 482 of 15 December 1998, approved and modified by Law No. 409/2001, with subsequent modifications and completions;m) the provisions of articles 21 1 and 21 4 of Law No. 133/1999 on stimulating private entrepreneurs to establish and develop small and medium-sized enterprises, as modified and completed by Government Emergency Ordinance No. 297/2000, published in the Official Gazette of Romania, Part I, No. 707 of 30 December 2001, approved and modified by Law No. 415/2001;n) the provisions of article 2 e) of Government Ordinance No. 14/1995 on some steps for stimulating the implementation of complex projects and long manufacturing cycle production, meant for export, published in the Official Gazette of Romania, Part I, No. 26 of 3 February 1995, approved by Law No. 70/1995, with subsequent modifications;o) the provisions of article 12 (2) of Law No. 332/2001 on the promotion of direct investments of significant impact in the economy, published in the Official Gazette of Romania, Part I, No. 356 of 3 July 2001.Annex nr. 1 LISTof the activities referred to in article 2 (5)1. Telecommunications2. Water, gas, electrical power, heating power, and freezing agent supply3. Goods transport4. Services provided by harbours and airports5. Passenger transport6. Delivery of new goods manufactured for sale7. Activity of commercial fairs and exhibitions8. Warehousing9. Activities of commercial publicity authorities10. Activities of travel agencies11. Activity of shops for personnel12. Rental and/or lease of movables and/or immovables. ----
