The VAT cash accounting system in Romania
By Raluca Tutu, Mirus Consultantá Fiscalá SRL
Persons subject to the VAT cash accounting system. These are taxable persons whose place of business is located in Romania, who are registered for VAT purposes and who have a turnover not exceeding RON 2,250,000.
Fundamental information about the VAT cash accounting system. Those who are subject to this system must only pay VAT on sales after invoices are paid by the recipients of goods or services they have supplied. By law, these invoices must be paid within 90 days and must include the phrase "TVA la încasare" (VAT cash accounting). Those who are subject to the system may have VAT deducted on the goods or services from their supplier, regardless of whether the supplier is also subject to the system.
Those who do not use VAT cash accounting, regardless of the tax system to which they are subject, may exercise their right to have VAT deducted for their acquisitions from suppliers who are subject to VAT cash accounting – but only upon payment of the relevant invoices.
VAT for those who apply the VAT cash accounting system.
Taxable persons registering for VAT purposes after 1 January 2013. The VAT cash accounting system applies only to taxable persons registering for VAT purposes after 1 January 2013. In such cases a notice (Form no. 097) must be filed.
VAT for taxable persons not subject to the VAT cash accounting system.
Operations exempt from the VAT cash accounting system
- Operations, the delivery or provision location of which is deemed not to be in Romania (intra-community deliveries of goods, exports);
- Deliveries of goods and/or provisions of services, the recipient of which is a person subject to VAT payment (intra-community deliveries of services and external deliveries of services);
- Deliveries of goods or provisions of services exempt from deduction right;
- Operations subject to special schemes provided in Article 1521 – 1523 (travel agencies, schemes for second-hand goods);
- Deliveries of goods and/or provisions of services, the value of which is received in cash from recipients that are legal persons, self-employed persons, freelancers and associations without legal personality;
- Deliveries of goods and/or provisions of services, the recipient of which is a person affiliated with the supplier/provider.
Mirus Consultantá Fiscalá SRL, Bucharest, Romania
T: +40 31 405 10 17
Raluca Tutu is a Romanian chartered tax consultant who leads the tax practice Mirus Consultanta Fiscala SRL. She has seven years' professional experience in VAT and international tax. Raluca is the lead tax consultant on various tax mandates for the firm's clients. She regularly publishes and contributes tax articles and opinions to various media channels, and is the author of the book "Value Added Tax, from Theory to Practice".
Mirus Consultantá Fiscalá SRL is one of the leading middle-market multi-disciplinary firms in Romania, focusing on tax, immigration, auditing, accountancy & payroll and advisory. Their mission statement is to build and maintain successful and mutually satisfying business relationships.
published: July 2013