Changes to the VAT Registration Procedure

Written by: Bridgewest

Changes-to-the-VAT-Registration-Procedure.jpgThe laws governing the registration procedure for VAT purposes have changed at the beginning of the year when an Order from the National Agency for Fiscal Administration entered into force. As a result, starting with this year the registration process is more complex but with the help of our accountants in Bucharest you can register your company and comply with all the current requirements.

The current VAT registration procedure

Companies that want to register as VAT payers in Romania must follow three steps:
- submit a statutory declaration that they perform economic activities at any of their headquarters (if any);
- have a clean record (the company has had no fiscal crimes in the past);
- pass an evaluation made by the competent fiscal authorities that the company is able to perform economic activities: it includes a form and an inquiry with 20 questions.
While the first two steps are straightforward, company owners in Romania can have difficulties with the final requirement. Moreover, if the company refuses to provide complete and comprehensive data about the income produced, the application for VAT registration can be rejected. 

The processing stage for the VAT registration applications

The application for VAT registration is submitted together with Form 088 – the statutory declaration that contains important information about the activity and situation of the company. The applicant will have to file information about the head office, the fiscal address, information about the company’s associates and administrators, information about the existing bank accounts, the number of employees and information about the accounting management within the company.
The applications for VAT registration can be rejected for a number of reasons but in most cases this is due to incomplete data about the company. This usually happens when investors make their first submission and fail to provide complete and accurate data about their company. In some cases, if the application is rejected the second time because of incorrect data, the National Agency for Fiscal Administration can request that the company is verified by competent anti-fraud authorities. 
You can avoid any application rejections and/or additional issues with the tax authorities if you request the services of a professional Bucharest accounting firm. You can contact our Romanian accountants for complete details about any other tax laws and requirements.