+++ EU - 2009 VAT refund deadline delayed from Sep 2010 to Mar 2011 +++ Poland - 1% VAT increase to 23% +++ Australia - Victoria Fire Service Levy to be scrapped in July 2012 +++ UK - VAT to increase from Jan 2011 +++ Romania - increases VAT 5% to 24% +++ UK - confusion on UK 1% IPT increase +++ Andorra - 4.5% VAT to be introduced +++ India - GST to be implemented April 2011 at three standard rates +++ Bulgaria - to introduce insurance premium tax at 2% +++ Finland - VAT and IPT raised to 23% +++ Belgium - the 9.25% insurance premium tax on credit insurance has been withdrawn +++ Canada - HST introduced in British Columbia and Ontario +++ Hungary - implements insurance premium tax +++ Bulgaria - Intrastat reporting thresholds increased +++ UK - HMRC backs down on VAT on InsuranceWide comparison website +++ France - changes requirements for fiscal rep on insurance +++ Bulgaria - New proposals being pushed with the World Bank to introduce mandatory Catastrope Fund to cover earthquakes etc. +++ +++ EU adopts new VAT Directive on electronic invoices +++ Portugal - increased VAT by 1% to 21% +++ New Zealand - increases GST to 15% +++ Spain - VAT rate increases to 18% +++ Croatia - a 10% motor 3rd party liablitiy risk premium will be charged from 2009 to cover traffic accident costs +++ Czech Republic - new rules on non-resident traders extends the requirement to VAT register +++ Greece in second emergency VAT increase from July +++ Hungary - increased VAT rate to 25% +++ Czech Republic - proposal to change VAT payment point to when cash received +++ Mexico - simplification of VAT reporting +++ EU - ECJ court ruling imposes VAT on salary sacrifice schemes and vouchers +++ Italy - extends reverse charge on VAT for foreign companies +++ Denmark - extension of VAT reverse charge on services from non-resident suppliers +++ Panama - increases VAT to 7% +++ Denmark - overhaul of VAT registration process to comply with EU employment law +++ Estonia - reduced VAT increased from 5% to 9%; many items now on standard rate +++ France - National Guarantee Fund levy on insurance premiums is rising +++ Mexico - increases VAT 1% to 16% +++ Estonia - 2% increased VAT from July 09 to help combat financial crisis +++ EU - New proposals to force all EU member states to switch to monthly VAT reporting to help combat fraud +++ EU - more proof required for VAT import exemptions for onward supply relief +++ EU - Revised Mutual Assistance Directive issued to assist tax authorities share information on VAT and IPT +++ EU - new electronic service to verify authenticity of VAT numbers +++ Finland - Traffic Safety Charge for 2009 will be Euro 7.2m +++ France - Tough new invoice requirements to help combat fraud +++ Taiwan - introduces VAT refunds for non-resident businesses +++ France - French Motor Insurance Parafiscal Charge hike from 0.1% to 0.6% +++ France - Natural Disaster Compensation Scheme has increased again from 8% to 12% +++ France - New information requirements for foreign companies applying for non-resident VAT registrations +++ Taiwan - introduces VAT refunds for non-resident businesses +++ France - Confirmation of changes to ACOSS levies, which are now managed by URSSAF +++ Germany - New IPT levy on Surety and Financial Guarantee reinsurance +++ India - sets CENVAT at 10.3% Germany - valid VAT number may not be sufficient evidence alone to allow for zero rating on intra-community supply +++ Germany - proposal to scap the requirement for annual VAT returns +++ Greece - withdrawal of Stamp Duty underway; Life and Damage insurance now exempt +++ Hungary - rules on tax point (now when invoice paid) creates risks for VAT recovery +++ India - many new activities brought into Service Tax regime +++ Hungary - Aircraft hull and aviation liability is now exempt from the 1.5% Fire Brigade Charge +++ Ireland - New retrictions on VAT relief on bad debts +++ Ireland - government insurance levy on non-Life increases from 2% to 3%; new 1% levy on Life +++ Mexico - simplification of VAT reporting +++ Italy - Hunting Accident Victims' Fund changed to 5% of 94% of premium +++ Italy - Scraping of the requirement on VAT-registered businesses for the annual filing of lists of customers and suppliers +++ Italy - Court ruling that VAT reclaims deadline should be two years +++ Italy - potential to defer VAT payments to point where cash received +++ Latvia - standard rate VAT increased by 3% to 21% from Jan 2009 +++ Latvia - 2% VAT increase to take standard rate to 23% from 2010 +++ Luxembourg - Fiscal representation revived for importers of goods +++ Luxembourg - international shipping vessels registered in Lux are IPT exempt +++ Netherlands, The - Tax authorities increase IPT rate from 7% to 7.5% +++ Poland - Potential for quarterly VAT returns +++ Poland - Plans for reverse charge on consignment stock +++ Poland - New 12% Parafiscal Charge on Motor Liability contracts to cover medical care at accidents +++ Poland - improved import VAT set-off scheme for established importers +++ Poland - Polish insurance chamber of commerce says 12% levy on 3rd party motor insurance to go +++ Poland - motor liability insurance is now exempt from the Fire Brigade Tax +++ Romania - Proposals being drawn up with the World Bank for new compulsory national catastrophe program +++ Romania - invoice issuing deadline has been extended to 15 days after the month of the taxable supply +++ Slovakia - adoption of the Euro brings new VAT return form +++ Slovakia - calls for increased VAT rate from the IMF +++ Spain - switch from quarterly to monthly VAT returns proposed +++ Spain - online submissions for non-residents; local bank account still required +++ Sweden - IPT now introduced at 32% of gross premiums on 3rd party liability risks +++ Sweden - group life insurance from Swedish or EU insurers is exempt from IPT +++ Switzerland - VAT rate increase to 8% in 2011 +++ Ukraine - VAT e-filling obligatory +++ United Kingdom - VAT registration threshold increased to GBP70k +++ Seychelles - introduction of VAT at 10% in 2012 +++ Jersey - call for rise in 3% VAT rate +++ Romania - imposes intra-community supply registers +++ India - GST implementation now planned for April 2011 +++ UK - wins ECJ case on restricting VAT refunds to non-EU banks and insurers +++

Romania VAT

Romania comes under the EU VAT regime, and is part of the European Union single market economy. VAT Directives are issued by the EU which lay out the principles of the VAT regime to be adopted by the member states. These Directives take precedent over the local legislation.

Click here to read about the 5% VAT increase to 24%, June 2010

Romanian VAT Law

Romanian VAT law is administered through the Romanian Ministry of Finance.

romanian VAT Registration

Foreign companies may register in Romania for VAT without the need to form a local company – known as non-resident VAT trading. There is no VAT threshold in Romania for the registration of non-resident traders – a VAT number must be in place before the commencement of taxable supplies.

There are strict rules on the situations where a registration is permitted. Common scenarios which require a Romanian VAT registration include:

Importing/exporting goods into/out of Romania;
Acquiring goods/services from other EU states into Romania;
Organising live events, conferences etc in Romania;
Holding goods in a warehouse in Romania as stock for resale;
'Supply and install' services; and
Distance selling to private individuals in Romania, e.g. internet retailing

romanian VAT Compliance

There are detailed rules controlling the recording and processing of Romanian transactions. These include guidelines on:

Romanian invoice requirements;
Use of the 'Reverse Charge' procedure
Foreign currency reporting and translation;
Correcting errors from prior returns;
Credit notes and corrections; and
What accounting records must be maintained.

romanian VAT Rates

The standard VAT rate in Romania is 24%. There is a reduced rate of 9%. Click her to read about 5% increase 26 June 2010.

There are many variations to the rates above, including exempt taxable supplies. Please contact us to learn more:
enquiries@tmf-vat.com

ROMANIAN VAT Returns

Companies with a Romanian VAT number must submit periodic returns detailing all taxable supplies (sales) and inputs (costs). Generally, VAT returns submitted by non-resident traders in Romania are submitted monthly by the 25^th of the month following the reporting month-end.

romanian FISCAL representative

While it is not necessary to appoint a Fiscal Representative in Romania for EU businesses wishing to VAT register in Romania, it is necessary to have an agent based in Romania who can act for the company and where the Romanian tax authority can, if required, communicate, conduct tax inspections, and examine invoices and book records.

It is however a requirement that non-EU businesses appoint a Fiscal Representative.

romanian RECAPITULATIVE REPORT and intrastat

In addition to VAT returns in Romania, companies may be required to submit additional statistical information.

The Romanian EC Sales List, which is part of the Recapitulative Report, must be completed and submitted monthly by the 25^th of the month following, to account for Intra-community despatches of goods and services. The Recapitulative Report also includes a reporting requirement for acquisitions (receipt of goods & services received from other EU states).

For goods only, if certain thresholds are exceeded, either for despatches or arrivals, an Intrastat report must be completed and submitted to the Romanian statistical office. The report must be submitted monthly by the 15^th of the month following the reporting month.

romanian VAT Refunds

If a foreign company is providing taxable supplies in Romania, but unable to obtain a Romanian VAT number, or simply incurring Romanian VAT on local goods or services, then Romanian VAT may be recovered through a VAT reclaim.

For more details, click here to read about our VAT Recovery service.

how TMF can help you in romania

If you require assistance with VAT in Romania or beyond, TMF would be delighted to help. Our UK central co-ordination centre can help; they can also put you in touch with TMF Bucharest.
enquiries@tmf-vat.com

+44 (0)870 067 8881