NNDKP Tax Flash No. 3/2024 – Amendments in the field of VAT and excise duties and update of the RO e-Transport Procedure
In M.O. no. 596/26 June 2024, the GEO no. 78/2024 for the amendment of the Fiscal Code in the field of VAT and excise duties was published and in M.O. 597/27 June 2024, the Order no. 1.337/1.268/2024 for the approval of the updated Procedure for the use and operation of the RO e-Transport system was published
VAT and excise duties amendments
The fiscal territory for the purpose of VAT and excise duties is clarified, in the context of a uniform treatment, from a customs and fiscal perspective, of operations related to the exploration and exploitation of natural mineral deposits in Romania’s contiguous zone or exclusive economic zone in the Black Sea.
In this regard, it is clarified that the territory of Romania is the territory delimited by Romania’s state border, in accordance with the provisions of Government Emergency Ordinance no. 105/2001 on Romania’s state border, thus the EEZ and the contiguous zone are not considered to be part of Romania’s VAT and excise territory.
The legislative amendment classifies the area beyond the territorial waters’ limit as being outside Romania and the EU, similar to any other third territory, and will affect aspects such as:
- Supplies of services with the place of taxation beyond the territorial waters’ limit will no longer be subject to VAT;
- Any supplies or movements of own goods transported from the EU (including Romania) beyond this limit will be considered exports;
- Supplies or movements of own goods transported from outside the EU beyond the limit of Romania’s territorial waters will not be considered imports from a VAT perspective and, therefore, will not be subject to VAT;
- Any movements of goods (with or without a commercial transaction) from those areas to the shores of Romania will be considered imports, for which VAT would be owed unless an exemption is applicable.
From an excise perspective, the amendment will lead to certain exemptions for excisable goods delivered or consumed beyond the territorial waters’ limit, as this territory will be considered outside Romania and the EU. Additionally, excisable goods coming from these areas will be considered as imported.
The VAT scheme applicable to non-refillable packaging subject to the deposit return system is regulated, which includes provisions relating to the VAT scheme applicable to the deposit in the marketing chain and to the difference between the value of the deposits received and the value of the deposits returned by the administrator of the deposit return system.
VAT adjustment is allowed in all situations where the obligation/right to adjust arises, regardless of whether the resulting amount is negligible or not (as it was until now).
In the field of excise duties, changes are made to the conditions of distribution and marketing of raw tobacco, in the sense that raw tobacco or partially manufactured tobacco may be marketed only to an economic operator in Romania authorized as a warehouse keeper for the production of manufactured tobacco or to establishments authorized as first-processors. Unprocessed leaf tobacco is included in the category of raw tobacco.
The procedure for using and operating the national e-Transport system
Order No. 1.337/1.268/2024 approves an updated procedure for the use and operation of the national e-Transport system.
The RO e-Transport system is accessible through the SPV, either in own name or through legal representative, designated representative, or empowered person.
It is provided that road vehicles with a maximum technically permissible mass of at least 2.5 tons, loaded with goods with a total gross mass of more than 500 kg or a total value of more than RON 10,000, related to at least one lot of goods subject to transport, are monitored in the RO e-Transport System, regardless of whether the goods are classified as high fiscal risk goods.
The data declared in the RO e-Transport System are, mainly, related to:
- sender, recipient/consignee, name, characteristics, quantities and value of the goods, places of loading and unloading, details of the means of transport and carrier, the declared date of the beginning of the transport, and the generated UIT code;
- the type of operation and its purpose.
With regard to the issuance of UIT codes, the following are distinguished:
- In case of a lot of goods transported internationally, all the goods transported will be declared generating a single UIT code;
- In the case of national shipments including high fiscal risk goods, all categories of goods transported will be declared, generating a single UIT code;
- A number of UIT codes equal to the number of lots of goods covered by the transport shall be generated, in case of groupage transport.
The total gross mass of the goods shall include the net mass of the goods and the mass of packaging required for trading and transportation.
In determining the total amount, account will be taken of:
- Value of goods excluding VAT;
- For transactions in foreign currency, the conversion into RON is made at the exchange rate of BNR valid on the date of reporting the transport in the RO e-Transport system;
- Depending on the type of transaction, the value of the goods shall refer to the value known according to the commercial, financial, or accounting documents, as appropriate, at the time of the declaration;
- In the case of imports, the declared value will be that from the external invoice.
Also, rules for non-received and returned goods, as well as for intermodal transport (i.e., with means of transport belonging to more than one transport category: ship, rail, air, etc.), transport in case of non-transfer operations and “van sales” are being established.
The procedure for amending the declared data after obtaining the UIT code, but no later than the actual putting into motion of the vehicle, is provided. After this moment, only the information on the means of transport may be updated.
The procedure for confirmation of the data after obtaining the UIT code is established.
The obligations of the transport operator are, mainly, to make the UIT code available to the driver of the vehicle and ensuring the transfer of the current positioning data of the transport vehicle through appropriate devices.
The obligations of the driver of the vehicle are to switch on and off the vehicle positioning devices and to present the UIT code when requested by the competent authorities.
Clarifications are brought on the determination of the value of undeclared goods to be seized, as well as on the transportation of high fiscal risk goods representing agricultural products or goods traded in cash and carry.
The Romanian version of this newsletter is available here.
