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New rules for VAT registration

Written by: Bridgewest

New_rules_for_VAT_registration.jpgA new procedure for the VAT registration will enter into force starting with February 1. The reason for registration will be stated by completing form 088 which will soon be available. The new regulations issued by the National Agency for Fiscal Administration apply for three distinct situations that require the tax payer to register for VAT purposes. Our accountants in Romania can help you with information about the rules for filling the form as well as additional information.

Criteria for registration

 
The fiscal authorities will take into consideration three criteria when allowing tax payers to register for VAT purposes:
 
- the legal person must not have an interdiction to perform economic activities in the location that represents the registered office or the location that is used for secondary spaces;
- none of the administrators and/or associates of the limited liability company nor the firm itself have any registered crimes against the financial legislation and the accounting legislation;
- an evaluation has revealed the legal person's intention and capacity to perform economic activities. 
 
According to these criteria, if the tax payer fulfills all the requirements, the competent fiscal unit issues the decision for registration for VAT purposes, or if the application is rejected, the individual will receive an explanatory note with the reasons for rejection. If the applicant partially fulfills the reevaluation criteria, he/she or the legal representative will have to come for a final evaluation at the territorial unit belonging to the fiscal authority.
 
The decision to issue or reject the application for registration can be communicated to the applicant in a time-frame of 1 to 30 working days, depending on the status of the submitted documentation and if other modifications and additions are necessary . 
 

Other information for VAT payers

 
The registration for VAT purposes can be made after the company is registered, even if the threshold amount mandatory for VAT payers is not reached. Thus, companies have the option to register for VAT voluntarily. A mandatory registration is needed if the company exceeds threshold amount of 220,000 lei. Individuals registered for VAT that have had their registration cancelled can re-register by filling a special form.
 
Our team of accountants in Bucharest can help you register for VAT and submit all the necessary documentation.