Information provided by COLUN TAX.
COMMUNICATION FROM NATIONAL INSTITUTIONS
July 22, 2024 – Anti-fraud checks in the North Station area
- The General Directorate for Fiscal Anti-Fraud (DGAF) systematically assesses fiscal risk in commercial areas where taxpayer compliance with tax legislation is low and conducts operational actions to identify and sanction legal violations.
- On July 19, 2024, DGAF inspectors conducted anti-fraud checks on economic operators conducting commercial activities in the North Station area of Bucharest. The main objectives verified were the compliance with obligations to equip with electronic fiscal marking devices and to issue fiscal receipts for goods sold at retail or services provided directly to the population, the existence of supporting documents for the goods sold, the legality of economic activities, and the legal use of labor.
- The checks confirmed the assessed fiscal risk, identifying a series of contraventions for which the legal sanctions were applied. Monitoring of fiscal risks and anti-fraud control in commercial areas will continue to increase taxpayer compliance, and DGAF recommends that all taxpayers comply with tax legislation. Additionally, DGAF advises all those who purchase goods or services requiring fiscal receipts to request these receipts when paying in full or in part, with cash or by using credit/debit cards or cash substitutes.
Read the full statement at: DGAF North Station Checks
July 19, 2024 – DGAF inspectors check national economic operators performing periodic technical inspections (ITP) for vehicles
Anti-fraud inspectors will continue their controls until the fiscal risk in this area is significantly reduced and will target all taxpayers whose fiscal behavior is deemed inadequate in the risk analysis.In the case of taxpayers performing ITP for vehicles, significant discrepancies were identified between the services rendered and the taxable revenues declared. Among the 600 taxpayers initially selected nationwide, DGAF inspectors found a large number of undeclared ITP services in previous years, with differences of over 19,000 undeclared ITP services at a single taxpayer.
So far, 383 anti-fraud checks have been completed, revealing additional fiscal claims of over 45 million lei.
Read the full statement at: DGAF ITP Checks
July 18, 2024 – Press release from the Romanian Minister of Labour and Social Solidarity: “Romania and Turkey strengthen cooperation in the field of labor and social security”
The Romanian Minister of Labour and Social Solidarity, Simona Bucura-Oprescu, and the Turkish Minister of Labour and Social Security, Vedat Ișikhan, signed a protocol in the field of labor and social security today at the Government headquarters, following the commitments made at the High-Level Romania-Turkey Strategic Cooperation Council meeting held in Ankara on May 21.The main objective of the protocol is to enhance bilateral cooperation in the fields of labor and social security.
Read the full statement at: Romania-Turkey Cooperation Protocol
July 18, 2024 – The Chamber of Fiscal Consultants (CCF) sent the Ministry of Finance a letter with observations and improvement proposals on the Government Decision Project for amending and supplementing the Methodological Norms for the application of Government Emergency Ordinance no. 28/1999 on the obligation of economic operators to use electronic fiscal marking devices, approved by Government Decision no. 479/2003, published on the MF website for decision transparency
According to the CCF letter:
- Regarding the justification of the regulatory intent, specifically the immediate necessity and the effects of the proposed changes on cash register distributors and the economic environment
- CCF dismantles the effectiveness of combating tax evasion through the two ANAF methods: (i) verification by buyers (population), using the QR code on the fiscal receipt, of the connection of the cash register that issued the receipt to the ANAF server and (ii) extracting the fiscal identification code from the fiscal receipt if the buyer requested its inclusion in the ANAF database, for use in issuing the pre-filled VAT return.
- CCF emphasizes that it was absolutely mandatory for ANAF's justifications to also present the implementation costs that the Romanian economic environment will have to bear initially, and later the citizens.
- CCF refers to the costs of ICI authorizing firmware changes for all existing cash register models, the costs of installing these firmware changes in all approximately 700,000 cash registers in Romania, an operation to be performed by distributors using a stick, by traveling to the installation site of each cash register, the fact that distributors will need to recover these costs from merchants, and the reversal of these financial effects towards the final buyer's pocket.
- CCF proposes: “In our opinion, given that these solutions identified by the tax authorities involve a firmware modification and thus a reauthorization and cost generation as listed above, then much more efficient technical solutions could have been assumed for tax purposes, namely the extraction of all information from the fiscal receipt through the XML files transmitted daily by cash registers to the MF-ANAF information system, practically implementing the concept of electronic fiscal receipt, which could have ensured the premises for efficient information processing for tax purposes and future developments in issuing fiscal receipts also in electronic form, considering the security conditions provided by fiscal cash registers with electronic journals.”
- Regarding the definition of economic operators in the sense of OUG no. 28/1999 on the obligation of economic operators to use electronic fiscal marking devices:
- According to art. 1 para. (1) of OUG no. 28/1999, economic operators are understood to be natural and legal persons, family enterprises, and any other entities, except public institutions, that collect, on the territory of Romania, including at state border crossing points, fully or partially, with cash or using credit/debit cards or cash substitutes, from natural or legal persons, the value of goods sold at retail and services provided directly to the population.
- CCF points out that individual taxpayers who earn income from renting up to 5 rooms for tourism purposes and who are taxed on an annual income basis according to the Fiscal Code are expressly exempted by law from the obligation to keep their own accounts of income and expenses from such rental income.
- CCF proposes a change to the norm project: that these taxpayers be exempted from the obligation of art. 1 para. (1) of OUG no. 28/1999.
Read the letter at: CCF Letter no. 3320/18.07.2024 sent to the Ministry of Finance
MEDIA NEWS
July 23, 2024 – e-Invoice in Italy: For individuals, a unique code of 7 zeros is used / In Romania, a fiscal CNP is desired for citizen identification
- Romania has adopted the Italian model for implementing e-Invoice. Currently, B2B transmission is mandatory, but optional until January 1, 2025, for B2C (invoices issued to individuals). After that date, all invoices issued to Romanians will have to be uploaded to the MF system.
- The issue is that if a merchant wants to issue an invoice to a Romanian and transmit it in e-Invoice, they must enter the CNP, although the system currently allows any numbers to be entered.
- The Ministry of Finance is working on providing fiscal CNPs for purchases, as vaguely mentioned in two press releases in the past month.
- In other words, the Italian tax authorities do not need to know who and what is bought online, only the values from the VAT perspective.
- However, in Romania, things are different. The Ministry of Finance wants to know what every Romanian buys, as they can be easily identified after these fiscal CNPs are provided.
- The information needed by ANAF is in Declaration 394 submitted by Romanian companies. The Ministry of Finance stated that this declaration will be modified or eliminated in the future, according to a statement from the institution after meeting with accounting experts. This is to avoid having the same information twice. From 2025, if this declaration is not eliminated, ANAF will have the information three times, as it will also be in SAF-T – standard audit file (Declaration 406, which will have to be completed by small companies from January 1). It is currently submitted by large and medium companies.
Read the news at: e-Invoice in Italy and Romania
July 16, 2024 – 19 years since its establishment, the Baneasa Project continues to be an important player, having a strong impact on the capital's economy
- According to the latest PwC impact study for the period 2005 – 2023, legal entities within the Baneasa Project have made a significant contribution to the public budget over the past 19 years: over 1.4 billion euros to the state, over 200,000 jobs are the terms that define the Baneasa project, positively influencing the city's evolution through its constant commitment to innovation and excellence.
- By attracting investments, developing infrastructure, and creating jobs, the project has significantly contributed to shaping the economic and social landscape of the capital to European standards. Evaluations of its economic and social impact highlight its crucial role in supporting economic growth and strengthening Romania's position on the map of international investments.
Read the news at: Baneasa Project
July 21, 2024 – Ultra-wealthy entrepreneurs threaten to leave the UK over proposed tax system modernization
- Entrepreneur Bassim Haidar has expressed a desire to relocate to Greece or Monaco due to the modernization proposal for the tax system in the UK. He criticized the labor government's policy, claiming it could turn the country into a no-go zone for the wealthy.
- Keir Starmer's government plans to eliminate permanent tax exemptions for non-doms. Many of those affected are international business owners, and they might reconsider their investment and residence plans in the UK.
Read the news at: Ultra-wealthy entrepreneurs in the UK
July 15, 2024 – Fixed establishment and permanent establishment controversy continues. How can tax imposition risks from ANAF be avoided? What industries are targeted?
- Companies conducting transactions in Romania with non-resident entities need to be aware of the permanent establishment and fixed establishment risks from a VAT perspective.
- ANAF controls target industries such as pharmaceuticals, electric energy, automotive, and heavy industry, which might be affected by these risks, potentially disrupting their business models.
