1. European and International Taxation
EU Tax Harmonization – VAT in Member States
The case of Romania
Jean Monnet Module: Managing the EU: Taxation, Economics and Governance
Cluj-Napoca

2. Is VAT payable in Romania?
European and International Taxation
Is VAT payable in Romania?
5 Essential questions:
Taxable person
Operation is taxable
Place of the operation
Exemption
Person that has to pay the VAT

3. European and International Taxation
•YES
•Romania?
•NO
•NO
•LIABLE PERSSON
•Exemption?
VAT SUPPLYER
VAT CLIENT
VAT IMPORTER
VAT fiscal reprezentative
NO VAT DUE IN
ROMANIA
•NO VAT IN ROMANIA

4. Taxable person => art. 269 Fiscal Code
European and International Taxation
Taxable person => art. 269 Fiscal Code
any person that undergoes
In an independent matter
No matter the place
Economic activities as forseen in art. 269(2) of the fiscal code
Whatever the purpose and the outcome of this activity.

5. Taxable operations Supply of goods or services in cash
European and International Taxation
Taxable operations
Supply of goods or services in cash
Place of supply => Romania
Undertaken by a taxable person
Has to be generated from an economic activity

6. European and International Taxation
Place of the operation
Supply of goods with transportation => Place where the goods are located at the beginning
includes intra-community acquisitions
Supply of goods without transportation: the place where the goods are available to the client
Supply of goods with installation / assembly => the place where these are installed
Intra-community purchases => Place => the member state where the transport ends!
Import of goods => Place => where the goods enter the community

7. European and International Taxation
Import VAT procedures
Obligations in cases goods are supplied or transferred to another MS:
Conditions for the exemption are set by the MS (art 131 of VAT directive),
Different obligations, control mechanisms in place,
- VAT declaration,
- VAT identification / possible tax representative,
- Recapitulative statement (VIES)…

8. European and International Taxation
Servicii legate de bunurile imobile
•Servicii de restaurant si catering
•Art. 271 CF
•B2B
• Locul unde beneficiarul isi are stabilit
•sediul activitatii economice,
•exceptand:
•Activitati culturale, artistice,
sportive, stiintifice, educationale,
de divertisment precum si alte
activitati similare
Servicii de intermediere
•Inchiriere de mijloace de
transport pe termen scurt
(Rent a car)
•Servicii intangibile
•Reguli speciale - Use and enjoyment
•B2C
Locul unde prestatorul isi are stabilit •
•sediul activitatii sau un sediu fix de la care
•sunt prestate serviciile
•exceptand:
•Servicii de transport
intra-comunitar
•Activitati auxiliare
serviciilor de transport
precum si lucrarile asupra
bunurilor mobile corporale •:

9. Supply of services B2B B2C Where the beneficiary has its HQ or a PE
European and International Taxation
Supply of services
B2B
B2C
Where the beneficiary has its HQ or a PE
Where the supplier has his HQ or a PE from where the activities are carried out

10. Supply of services - exemptions
European and International Taxation
Supply of services - exemptions
B2B / B2C
B2C
In case of services related to imovable goods
Services related to cultural/sports/education/scientific activities
Local transport of people
Restaurant and catering
Rent a car (short term lease of vehicles)
Beneficiary is outside the EU:
Services related to transport, evaluations and works on movable goods => taxable in Ro if these are done in Ro
Mediation services
Intra-community transport
Beneficiary is outside the EU:
Leasing / renting transport vehicles

11. Case studies: Case studies: •Romanian client is a taxable person
European and International Taxation
Case studies:
Case studies:
•Hungary
•Supplier in HUN
•Processed goods
• Processed return to Romania
•Romania
•Romanian client is a taxable person
•Raw materials

12. 2. Operation in the scope of VAT? 3. Place of the operation?
European and International Taxation
Operation handled by a
taxable person?
2. Operation in the scope of VAT?
3. Place of the operation?
4. Exemption?
5. Who is liable to pay VAT?
Yes
Yes (processing of raw
materials)
Romania (art. 271, alin. (2),
CF) NO
Romanian client

13. Other examples European and International Taxation
Company A from Romania purchases goods from company B from Germany. According to the contract, the goods are transported from Germany in Hungary at the company C, C being one of A major clients.
Company A from Romania, signs a contract for the sell of goods with company B from Hungary. On behalf of B, company A delivers the goods from Romania in the Ukraine to C, C being one of B’s distributor on the Ukraine market.
Company A from Romania signs a contract with B from Portugal. Company A has to issue a report on the tax regime of real estate in Romania.
Company A from Romania signs a contract with B from Germany. Company A has to issue a report related to a building which B wants to purchase.
Company A from Romania signs a contract with B from Switzerland. Company A has to transport equipment from Constanta to Cluj to company C, C being one of B’s clients.