Value added tax
The VAT represents a state budget income, included in the category of indirect incomes, which apply to operations that the law deemed to be subject to this tax.
The scope of the VAT includes operations that imply payment and operations assimilated to the same, carried out by the entrepreneurs in an independent manner, as follows:
- deliveries of movable goods and/or rendering of services carried out in the course of the exercise of the professional activity;
- the transfer of ownership over immovable goods among taxpayers, as well as the transfer between taxpayers and individuals;
- import of goods;
- services executed by the performers having their headquarters or residence abroad, for which the performing place is deemed to be in Romania.
Taxation rules. Taxation quota. Taxation basis.
Depending upon the taxation rule applied, the operations included in the scope of the VAT are divided into:
- operations the taxation of which is mandatory, over which a quota of 19 percent is applied;
- operations over which a zero quota is applied; for such operations, the suppliers/performers of services have the right to deduct the fee related to the acquired goods and services intended for achieving the taxable operations;
- operations exempt from the payment of VAT3.
The taxation basis is represented by the counter value of the delivered goods or rendered services, VAT not included.
Excises are special consumption fees owed to the state budget for certain domestic and imported products.
The products subject to excises are:
- alcohol, distilled beverages, alcoholic beverages, wines and beer;
- tobacco products;
- mineral oils;
- other products and product groups provided for under the law (motor vehicles, certain electronic equipment or video-electronic equipment, crystals, jewelry, etc).
The applicable excise quotas are regulated by the law per product categories/quantities. Products exported by manufacturing economic operators either directly or through economic operators that carry out their activity on commission, products in a regime of transit customs and products in a temporary admission regime, as well as other products expressly provided for under the law are all exempt from the payment of excise taxes.
Customs fees apply to imported goods and are set on the basis of the Romanian import customs tariff, approved under the law. The customs tariff contains the combined system of classification of merchandise, the customs fees expressed in a percentage, as well as the customs fees resulting from applying preferential tariff measures provided for by the legal regulations.
Customs fees are expressed in a percentage and apply on the customs value of the merchandise, expressed in ROL.
Certain merchandise categories may benefit from a favorable tariff treatment, depending upon the type of merchandise or its specific destination, according to the customs regulations and the international conventions to which Romania is a party.
The law sets out the cases where, because of special reasons and circumstances, exemptions from rights are granted at the import of merchandise.