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Romanian Government issues Ordinance no. 16/2013
The Romanian Government have issued Ordinance no. 16/2013 for the amendment and completion of Law no. 571/2003 regarding the Fiscal Code and the regulation of certain financial-fiscal measures. Taxand Romania highlights the key VAT amendments introduced by the Ordinance.
- Starting with 1 September 2013 the following rules are introduced:
- The reduced VAT rate of 9% applicable for the supply of bakery products as well as of the related raw material necessary for their preparation (the Ordinance provides for the NACE/CPSA codes of the products for which the reduced VAT rate of 9% applies)
- Simplification of measures for the supply of electrical energy and for the transfer of green certificates carried out between taxable persons registered for VAT purposes in Romania, which will be applicable until 31 December 2018 (including cereals)
- In what concerns companies regulated by Law no. 31/1990 regarding Company Law, as republished, the VAT registration of taxable persons will now be cancelled for majority shareholders, or where applicable, sole shareholders with criminal records
- A new provision has been introduced according to which the cancellation of VAT registration is effective for the beneficiary from the day following when the cancellation of the registration is performed in the Registry of taxable persons
- New clarifications are brought with respect to the VAT registration/cancellation of the VAT registration number by error, and the VAT regime applicable from the occurrence of the error until the situation is corrected
- The provision according to which the storage of invoices by electronic means also implies the obligation to store the information guaranteeing the authenticity of the origin and the integrity of the content of invoices is repealed
Companies and individuals alike should be aware of the challenges brought by the introduction of Ordinance no. 16/2013 and the changes it brings to the Romanian tax legislation, to ensure that they are compliant and that their tax affairs are properly handled.