Order no. 103/2016 approving the Instructions for the application of the VAT exemption was published in the Official Gazette no. 106 of 11 February 2016. The present Order repeals Minister of Public Finance Order no. 2.222/2006.
The Order introduces a set of new rules, inter alia:
In case of a tax audit, the tax authorities require the taxable person to collect VAT as of the date of the chargeable event, if the relevant justifying documents supporting the VAT exemption are not available to that taxable person and the 90-days timeframe as of the date when the chargeable event occurred for the respective operation is exceeded.
The taxable person may carry out, within the legal statute of limitation, the settlement with the purpose of applying the VAT exemption as of the chargeable event date, if the respective person receives of documents supporting the VAT exemption:
- after the tax audit was finalized and
- subsequent to the expired 90-days timeframe as of the date when the chargeable event occurred for the respective operation
Further, the competent tax authorities will carry out the re-check.
In order to justify the VAT exemption for export of goods, it is no longer necessary to provide the document (e.g. transport document) which attests the fact that the transport is carried out by the supplier/buyer or by a third party on his behalf.
Clarifications were introduced concerning the way in which the VAT exemption is applied for successive supplies of goods, if the transport of goods outside European Union is performed by the buyer-reseller who is not established in Romania or by another person on his behalf.
It is mentioned that in case of vessels that are not new, used for the transport of passengers/goods for consideration or for commercial, industrial or fishing activities and which are attributed to the navigation in high seas, the VAT exemption provided by art. 294, para. (1), letter h) from Law no. 227/2015 regarding the Tax Code is applied if the respective vessels are actually and predominantly used for navigation in high seas for no more than 5 years.
This Order introduces the provisions of Decision no. 3/2015 of the Central Tax Commission with regards to the application of the VAT exemption for the supplies of goods and services, in the case of the vessels used for navigation in high seas and which are used for the transport of passengers/goods for consideration or for commercial, industrial or fishing activities, as well as for the vessels used for rescue or medical care at sea or coastal fishing. Specifically, the Order mentions the criteria to be considered in terms of the vessel’s ability for navigation in high seas, and its actual and predominant use for navigation in high seas.
For the application of VAT exemptions in case of supplies of services and/or goods carried out for the direct needs of vessels and/or for their cargo, the beneficiary must present a sworn statement certifying that the respective vessel is actually and predominantly used high seas.
