New VAT payment system starting with January 2013

According to Government Decision 15/2012 for modifying the Law 571/2003 regarding the Fiscal Code for 2013, the taxpayers with tax residence in Romania and whose revenue during October 1st 2011 – September 30th 2012, does not exceed 2.250.000 RON will be applying the VAT charge on cashed-in system starting January 1st 2013.

In order to comply with these provisions, the taxpayer who is pass to the new system is responsible for submitting, before October 25th, a written notification to prove that revenue during October 1st 2011 – September 30th 2012 (inclusive) did not exceed the 2.250.000 RON limit.

• VAT on cash system does not apply to taxpayers that are part of a single fiscal group.
• VAT on cash system applies only to transactions where goods or services are in Romania.

Transations which are not affected by the new system

According to Government Decision 15/2012 for modifying the Law 571/2003 regarding the Fiscal Code for 2013, the taxpayers with tax residence in Romania and whose revenue during October 1st 2011 – September 30th 2012, does not exceed 2.250.000 RON will be applying the VAT charge on cashed-in system starting January 1st 2013.

In order to comply with these provisions, the taxpayer who is pass to the new system is responsible for submitting, before October 25th, a written notification to prove that revenue during October 1st 2011 – September 30th 2012 (inclusive) did not exceed the 2.250.000 RON limit.

• VAT on cash system does not apply to taxpayers that are part of a single fiscal group.
• VAT on cash system applies only to transactions where goods or services are in Romania.

Transations which are not affected by the new system

Taxpayers that are effected by the new system will NOT apply the new system to the following:

• Dispatch of goods/services for which the beneficiary is affected by art. 150 alin. (2) – (6), art. 152 alin. (10) sau art. 160;
• Dispatch of goods/services that do not subject of VAT
• Transactions that get special status according to art. 152^1 – 152^3;
• Dispatch of goods/services whose value is cashed in, partially or completely, in cash by the taxpayer eligible for VAT on cash-in system, registered physical persons registered for VAT, Authorized Physical Persons, free practitioners and non-company associations
• Dispatch of goods/services for which the beneficiary is affiliated with the supplyer as by art. 7 alin. (1) pct. 21.)

According to the Fiscal Code, the Fiscal Authority has the obligation to establish a Registry of Taxpayers which will apply the VAT on cash-in system. The document will be public and will be made available on the site of Fiscal Administration National Agency (ANAF).

When is VAT paid if 90 days have passed?

If taxpayers registered with the new system did not cash in the money for the provided goods/services within 90 calendar days starting with the issuing date of the invoice, (days counted according to Civil Procedure Code), then the payment is due on the 90th day.

If the invoice has not been issued, then the 90 days are counted from the legal limit concerning the issue of the invoice (according to Civil Procedure Code).