Case study no 3


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 sale from Polish company to Romanian company) is generated automatically based on an invoice issued by Romanian company for the customer and the sales price is calculated as a fixed percentage of the sale price of Romanian company (according to the resale price method). Is it acceptable?

A: The resale price method is among the methods regulated by the Fiscal Code (art. 11) for the analysis of the prices between related parties. While determining the mark-up, expenses made by the reseller (in this case the Romanian subsidiary) must be taken into consideration.