The new procedure for obtaining the VAT code

In recent years, the VAT registration procedure has undergone several changes, sometimes to complicate it, sometimes to simplify it. However, the latest changes (made by order 239 for the approval of the VAT registration procedure, published in the Official Journal No 182 of 23 February 2021) entail a simplification of this procedure, which we shall describe briefly below.

Companies may apply for VAT registration before the start of business:

• it declares that it achieves a turnover that reaches or exceeds the exemption threshold of 300,000 lei;
• If you declare that you have a turnover below the exemption ceiling of 300,000 lei, you opt for the normal tax system. (Article 316(1)(a) of the Tax Code, paragraph 83).

In such a case, the companies shall submit to the tax administration on the same day as submission to the Office of the Commercial Register of which the application for registration in the Commercial Register and proof of filing of the file (this is the document received with its file number and release date by the ORC, for online files – list the portal and the verification number obtained by the ORC on the portal), the statute or constituent act of the new company and the application for VAT registration (form 098). The application shall be submitted by the applicant, as the legal representative of the company for which VAT registration is required, by a partner or other legally qualified person in the register of the competent tax authority or by registered post.

Companies apply for VAT registration after the start of business:

• if the turnover achieved in the course of a calendar year is below the ceiling of exemption of 300,000 lei, but opts for the application of the normal tax system.

In such a case, the companies shall submit declaration form 010 to the competent tax authorities. The declaration must be deposited, directly (by the legal representative) or by proxy, in the register of the competent tax authority or by registered letter.

After applications for VAT registration by companies, form 098 or, where applicable, form 010, the tax administration shall issue the decision on VAT registration and the registration shall be considered valid from the date of notification of that decision, namely:

• If VAT is required when the company is established, the decision to grant VAT is issued with the date on which the company is established.
• If VAT is subsequently requested, the decision will be issued with declaration 010 on the first day of the month following the submission of the declaration.

A major addition to the new procedure is the fact that the new law waives the risk analysis on tax registration and the possibility for the tax authority to reject such a request.

However, although ANAF no longer carries out checks on demand, VAT can be reversed retroactively if the company presents a high tax risk. Therefore, even if the procedure for obtaining VAT has been simplified, in order to avoid the risk of being cancelled, the taxpayer must fulfil the same conditions in the past (validity of the assessment, tax register, etc.).