Emergency Ordinance no. 111 / 2013 regulating certain tax measures and amending certain normative acts (published in the Official Gazette no. 809 of 19 December 2013)

VAT cash-in system

Starting with 1 January 2014 the VAT cash-in system will be optional.

Taxable persons registered for VAT purposes, having the seat of their economic activity in Romania, with a turnover of the previous calendar year below the threshold of RON 2,250,000 may opt for applying the VAT cash-in system. The system shall apply starting the first day of the second fiscal period following the year in which the threshold was not exceeded.

Taxable persons opting for implementation of the VAT cash-in system, or for the cancellation of this system, are required to submit by 25 January, a notification to the relevant tax authorities.

If the taxable person applying the VAT cash-in system fails to submit such notification, it shall be deemed that the person opted for the continuance of this system.

Taxable persons opting for implementation of the system are required to maintain the option until the end of the year. However, starting with the 2nd year, the option may be cancelled at any time during the year, between 1 and 25 of the month.

In case the taxable person exceeds the threshold of RON 2,250,000 during the year, the system is applied until the end of the next fiscal period, in which the threshold was exceeded (by submitting a notification in this respect).

For taxable persons applying the VAT cash-in system, the VAT chargeability occurs at the moment when the total or partial counter value of the invoice issued is collected. Up to 1 January 2014, the VAT chargeability occurred at the collection moment or on the 90 calendar date as of issue date of the invoice, if the invoice counter value was not collected within 90 days.

Excises

Level of excise duties

The ordinance stipulates the increase of the level of excise duties starting with 1 April 2014 (previously, it was 1 January 2014) for the following categories of energy products:

- leaded petrol: EUR 637.91/ton, respectively EUR 491.19/1,000 liters;

- unleaded petrol: EUR 557.91/ton, respectively EUR 429.59/1,000 liters;

- diesel: EUR 473.85/ton, respectively EUR 400,395/1,000 liters; and

- kerosene: EUR 557.39/ton, respectively EUR 445.91/1,000 liters.

Intrastat Statement

Intrastat thresholds

(Order no. 1042 / 2013 approving the Intrastat thresholds for 2014 published in Official Gazette no. 809 / 19.12.2013)

The Order approves the following Intrastat thresholds for the year 2014: RON 900,000 for intra-Community dispatches of goods and, respectively, RON 500,000 for intra-Community introduction of goods. The values are not changed compared to the previous year.

For additional information, please contact:

Venkatesh Srinivasan, Partner – Head of Tax and Legal

Ernst & Young SRL and E. Platis, C. Bazilescu LLLP 15-17 Dr. Ion Mihalache Street Tower Building, 19th Floor Sector 1, 011171, Bucharest, Romania

Tel: (40-21) 402 4000, Fax: (40-21) 310 7124

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