Many small businesses from Romania use advertising services from Google, Facebook and other similar providers. The VAT consequences are: The transaction is taxable in Romania, regardless whether Google added VAT or not in Ireland. In conclusion, the Romanian company will calculate VAT 19% to the whole value of the invoice and...
The sale of a property has multiple tax consequences and a complex procedure is needed to determine an accurate taxable basis. Failure to observe all legal provisions in the matter may have significant financial consequences, either in the sense of undervaluing the profit tax due, or in the sense of...
Q: How does Romanian law treat the distribution of software license and distribution of maintenance services, i.e. service-packs, care-packs (in particular: VAT taxation, specific rules of invoicing, payment terms, withholding tax)? A: The intercommunity supply of goods and IT related services is taxable using the reversed charge method in the country the...
Q: What are the MAJOR requirements established by Romanian law in relation to keeping the accounting books, chart of accounts, preparing and auditing financial statements? Is there a possibility to apply IFRS directly? Is the fiscal year treated as calendar year? A: Romanian companies must keep their books following the provisions...
As EU member Romania applies the regulations regarding the dividend tax exemption for dividends paid to a shareholder registered in EU, provided that this EU located company owns at least 10% of the shares during at least 1 year without any interruption, it has a specific legal form and it...
Q: What are the tax rules and the market practice as regards granting turnover bonuses to customers in Romania? Are there any specific requirements related to documenting of such bonuses? A: Turnover bonus is a common practice in Romania. According to art. 286, para (4) of the Fiscal Code such bonuses are...
Q: What is the tax treatment of costs of marketing actions (based on the Romanian law)? For instance, are costs of bonding events or additional attractions during conferences, trainings for clients treated as tax deductible? A:According with art. 25 of the Fiscal Code, as a general rule, only the expenses made...
Q: Due to the adopted conditions of complaints, any corrective invoice issued by the Romanian company for returning the goods by the customer would cause the automatic correction of invoice of Polish company to Romanian company. Is it acceptable in the buy-sell model, maintaining the same method for the price...
Q: Romanian company, acting on its own account, will be free to set its selling price and from the legal point of view, these prices are not (should not) affect the sales price of Polish company. Polish company wants to use the system mechanism where the Polish invoice (for the...
All expenses (lease, fuel, insurance) are fully tax deductible and the related VAT provided that the car is 100% for the use of the business. The company must produce supporting documents to prove such use (transportation sheet that includes at least the minimum information requirements as provided by law e.g....
