Beginning with August 1st 2010, the Register of Intra Community Operators is being set up

On June 23^rd 2010, the Emergency Ordinance no 54/2010 has been adopted, stipulating some measures to fight against tax evasion, ordinance that brings amendments to the Fiscal Code in force. The Ordinance was published in the Official Gazette no. 421 of June 23^rd, 2010.

The stated purpose for these changes is the registration and removal from the taxpayers records of those who are carrying out Intra Community trade particularly Intra Community acquisitions of goods, to reduce tax evasion on VAT.

Thus, beginning with August 1^st, 2010, the National Tax Administration Agency sets up and organizes the Register of Intra Community Operators that includes all taxable persons and non-taxable legal entities carrying out intra community operations, such as :

On June 23^rd 2010, the Emergency Ordinance no 54/2010 has been adopted, stipulating some measures to fight against tax evasion, ordinance that brings amendments to the Fiscal Code in force. The Ordinance was published in the Official Gazette no. 421 of June 23^rd, 2010.

The stated purpose for these changes is the registration and removal from the taxpayers records of those who are carrying out Intra Community trade particularly Intra Community acquisitions of goods, to reduce tax evasion on VAT.

Thus, beginning with August 1^st, 2010, the National Tax Administration Agency sets up and organizes the Register of Intra Community Operators that includes all taxable persons and non-taxable legal entities carrying out intra community operations, such as :

• intra community supplies of goods taking place in Romania,
• further deliveries of goods made within a triangular transaction as stipulated in art. 132 ^ 1 paragraph (5), performed in the member state of the arrival of goods and which are declared as intra community supplies with T code in Romania,
• intra community services, ie services for which the provisions of Art. 133 paragraph (2) are applied, performed by taxable persons in Romania in the benefit of taxable persons not established in Romania, but established in the Community, other than those exempt from VAT in the Member State in which they are taxable,
• intra community acquisitions of taxable goods that take place in Romania,
• intra community acquisitions of services, namely those for which the provisions of Art. 133 paragraph (2), made in the benefit of taxable persons established in Romania, including non-taxable legal persons registered for VAT purposes under art. 153 or 153 ^ 1, by taxable persons not established in Romania, but established in the Community and for whom the beneficiary has the obligation of tax payment under art. 150 paragraph (2).

In order to register in the Register of Intra Community Operators, taxpayers and non-taxable legal persons must submit to the competent tax authorities a registration request accompanied by other documents for proof, established by order of President of the National Tax Administration Agency. If in the case of taxpayers it is mandatory the presentation of the criminal record issued by the competent authority in Romania of the associates and administrators except for joint stock companies shaeholders.

There can not be registered in the Register of Intra Community Operators taxable persons and non-taxable legal persons who are not registered for VAT purposes according to Art. 153 or 153 ^ 1 and the taxpayers that have as associate or administrator a person against whom penal action was initiated and whose criminal record contains crimes in connection with any of the operations referred to in paragraph (1).

Organization and functioning of the Register of Intra Community Operators, including the procedure for registration and removal from the register, is approved by order of President of the National Tax Administration Agency.

Important to remember is that persons that do not figure in the Register of Intra Community operators do not have a valid VAT code for intra community operations, even if they are registered for VAT purposes according to Art. 153 or 153^1.

Requests for enlistment in the Register of Intra Community Operators are submitted to the competent fiscal authorities starting with the publication date of this emergency ordinance.

As for penalties, performing intra community operations constitutes contravention when the persons are not registered in the Register of Intra Community Operators. These type of contraventions are punishable by a fine between 1,000 to 5,000 Lei.