Registering for VAT purposes

Written by: Bridgewest

Useful_information_about_Form_088_for_companies.jpgCompanies that want to register for VAT purposes in Romania must complete Form 088 to justify the intent and ability to carry out economic activities. Although there are no instructions for filling the form, there are some issues companies should pay attention to when preparing the documentation for obtaining the VAT code. Our accounting firm in Romania can help you prepare any documents and obtain the VAT number.

Details about Form 088

Form 088, a declaration on own responsibility to assess the intention and capacity to undertake economic activities involving operations that are susceptible to VAT, was approved by the competent authorities and it is used in Romania starting with February 1, 2015. It contains 18 questions presented as a series of possible situations used to evaluate the intention and capacity of the company to perform economic activities. 
Because there are no specific instructions as to the completion of the form, taxpayers cannot anticipate how their answers can influence the decision to accept or deny their application for VAT registration. Some of the questions included in Form 088 refer to the space destined for head office in Romania, questions about the company’s associates, directors or administrators concerning their insolvency, if the taxpayer has any bank accounts opened in the country or abroad, the number of concluded individual labor agreements for the company, the studies and professions of the company’s administrators and others.

Risk areas when completing the form

Because the Romanian authorities have not released any information about how to complete the Form 088, taxpayers need to be careful when completing the form. Some risk areas might involve the questions referring to resident shareholders, the background of the company’s directors, and the number of employees or accounting methods.
Companies will have to fill the form responsibly and without making any false claims, depending on their particular situation. Our Romanian accounting firm can offer you assistance with the completion of forms and the preparation of documents for submitting the application for a VAT number in Romania.
You can contact our accounting firm in Romania if you have questions.