Business Guide to Romania* - Bayern - Europa
Business Guide to Romania* - Bayern - Europa
Business Guide to Romania* - Bayern - Europa
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Chapter 10<br />
Indirect Taxation<br />
Value Added Tax<br />
■ The standard VAT rate is 19% and the reduced VAT<br />
rate is 9%<br />
■ VAT payment exoneration for import of equipment<br />
and certain raw materials (included in a list)<br />
■ No physical payment for VAT reverse charge<br />
■ Simplification measures for certain transactions<br />
■ Only companies registered for VAT purposes in<br />
Romania are entitled <strong>to</strong> reclaim VAT<br />
■ VAT reimbursement within 45 days<br />
Excise Tax<br />
■ Tax warehouseas suspensive regime<br />
10.1 Value Added Tax (VAT)<br />
Scope of VAT<br />
The operations included in the scope of VAT are those for<br />
which the following conditions are fulfilled:<br />
■ They represent the supply of goods or services in<br />
return for a payment or an operation assimilated<br />
there<strong>to</strong>;<br />
■ The deemed place of supply is in Romania;<br />
■ They are performed by taxable persons;<br />
■ They result from economic activities.<br />
The import of goods is also within the scope of VAT.<br />
A taxable person is any person conducting economic<br />
activities anywhere in an independent manner, irrespective<br />
of the purpose or result of those activities.<br />
46 PricewaterhouseCoopers - <strong>Business</strong> <strong>Guide</strong> <strong>to</strong> Romania 2005<br />
Cus<strong>to</strong>ms and International Trade<br />
■ Romania has adopted the Harmonised System for<br />
the denomination and classification of goods (HS),<br />
which is a six-digit code nomenclature and detailed<br />
at eight-digit codes in line with the Combined<br />
Nomenclature applied by EU countries<br />
■ Romania is an associate member of the EU, EFTA<br />
and CEFTA and has signed free trade agreements<br />
with Albania , Bosnia-Herzegovina, Israel,<br />
Macedonia, Moldova, Serbia and Montenegro and<br />
Turkey<br />
■ A wide range of products can be imported or<br />
exported without an import/export license.<br />
Nonetheless, import licenses are required for<br />
commodities such as oil, certain chemical products,<br />
and weapons<br />
■ Import of goods with preferential origin (i.e. EU) are<br />
not subject <strong>to</strong> cus<strong>to</strong>ms duties<br />
Place of Supply<br />
The rules for establishing the place of supply for goods<br />
and services (and therefore the place of VAT taxation) are<br />
similar <strong>to</strong> those stipulated in the EU 6th VAT Directive.<br />
Taxable Regimes<br />
Standard rate<br />
The standard VAT rate is 19% and is applied <strong>to</strong> all<br />
supplies of goods and services, including imports, not<br />
qualifying for an exemption (with or without credit) or for<br />
VAT reduced rate.<br />
Reduced rate<br />
The reduced VAT rate is 9% and is applied <strong>to</strong> medicine<br />
for human and veterinarian use, books, newspapers and<br />
periodicals, accommodation in hotels or in areas with a