VAT changes

Emergency Ordinance no. 84/2016 amending certain acts in the financial field, was published into Official Gazette no 977/06.12.2016

The main provisions of the Emergency Ordinance amending Fiscal Code are:

The “Stock Option Plan” Program can be applied by all companies, not just for those traded on the stock exchange.

Taxable person which had the VAT number canceled may exercise the right to deduct VAT on purchases made during that period, even if the invoice does not include the VAT registration code of the taxable person.

Beneficiaries who have made purchases from a supplier who had invalid VAT number are entitled to deduct VAT after the re-registration for VAT purposes of the supplier.

Clearer rules are introduced for determining amended fiscal year to taxpayers who change their financial year, according to accounting rules.

Reinvested profits facility also apply for the right to use a software. Application of the facility is extended period for an indefinite period.

Minimum capital threshold for taxation of micro-enterprises is reduced from 25,000 euro to 45,000 lei (i.e. 10.000 eur).

Gross remuneration received for work performed by daily workers is not subject to social insurance contributions. Provision enters into force from the publication date of OUG 84/2016.

An optional special VAT regime for farmers (individuals, PFA, individual or family company, with headquarter in Romania) is introduced. The special regime involves exempting certain obligations regarding VAT.

The option is done by submitting a notice to the competent authority on the application of the special VAT regime.

The obligation to register in the Register of Intra-community operators it is repealed.

The obligation to submit informative statements 392A, 392B and 393 shall be suspended.

Emergency Ordinance will come into force on 1 January 2017.