1. 1) Clarifications in respect to VAT exemptions and reduced VAT rates




In the Official Gazette no. 722 dated August 4, 2023, it was published the Government Decision no. 653 of 2023 for modifying the methodological norms of the Fiscal Code. The changes refer to VAT exemptions and reduced VAT rates, as follows:




• Orthopedic products, medical prostheses and accessories are excluded from the application of the reduced VAT rate of 9% and mentioned as VAT exempt.




• Products falling under CN codes 2202 10 00 and 2202 99 are excluded from the application of the reduced VAT rate of 9%. The standard VAT rate of 19% will be applied to them.




•  The following provisions are introduced for the hospitality industry:




- The reduced VAT rate of 9% applies to the types of accommodation provided by Government Ordinance no. 58/1998. The reduced rate applies to the total price of the accommodation, which may include alcoholic and non-alcoholic beverages falling under CN codes 2202 10 00 and 2202 99.




- The standard VAT rate of 19% applies to alcoholic and non-alcoholic beverages falling under CN codes 2202 10 00 and 2202 99, served in a restaurant or offered as part of catering services.

• The threshold for the reduced VAT rate of 5% for sale of housing increases from 450,000 lei to 600,000 lei.





• Provisions regarding the justification of the VAT exemption in the medical field are introduced, as follows:




-  For the services of construction, rehabilitation, modernization of hospital units from the public state network, the justification of the exemption is made with the documentation based on which these services are provided, such as contracts concluded with the beneficiary.




- For the deliveries of medical equipment, apparatus, devices, accessories and protective equipment, materials and consumables for sanitary use, as well as for the adaptation, repair, rental and leasing of such goods, carried out to hospital units in the state public network , the tax exemption is applied directly, through invoicing without VAT, based on the affidavit of the legal representative of the hospital unit, which states that the respective goods are normally intended for use in the field of health care or for use by disabled people, essential goods for compensating and overcoming disabilities.




If the goods are invoiced to a central or local public institution/authority, the tax exemption is applied directly, through invoicing without VAT and is justified by an affidavit of the legal representative of the respective central or local public institution/authority which states that the purchased goods/services are intended for a hospital unit from the public state network for which it provides financing; it is also necessary the previously mentioned affidavit.


- For imports and intra-community purchases of medical equipment, apparatus, devices, accessories and protective equipment, materials and consumables for sanitary use, normally intended for use in the field of health care or for use by disabled persons, essential goods to compensate and overcome disabilities, the VAT exemption applies to operations carried out directly by the hospital unit from the public state network or by the central or local public institution/authority that ensures its financing, based on the affidavits mentioned above, as the case may be, which are submitted to the competent customs office at the time of import.

1. 2) New D300 form in respect to VAT




Considering the clarifications made regarding VAT exemptions in the medical field, in the Official Gazette no. 720 dated August 4, it was published the NAFA Order no. 1176/2023 dated July 26, 2023, for the approval of the new format of the VAT return (D300).




According to this order, these new exempt operations are reported, in Form 300, separately from other tax exemptions.


The new form is used starting with the declaration of fiscal obligations related to August 2023.







2. 3) Clarifications in respect to presenting the identification card and service order for a tax audit, during online and physical meetings




In the Official Gazette no. 756 dated August 21, 2023, it was published the NAFA Order no. 1229/2023 for the approval of the procedure for presenting the tax inspection identification card and the service order within the tax inspection actions.




This order includes three situations. In all these situations, reference will be made to the tax inspection report regarding the methods of presenting the inspection identification card and the service order, signed by both parties physically or electronically, as the case may be




a. If the taxpayer/payer goes to the headquarters of the tax authorities, the inspection identification card and the service order are presented directly, and the fact that they were presented will be recorded in a "minute".




b. If the presentation of identification card and the service order is carried out by means of audio-video communication, the following situations may occur:




• If the taxpayer/payer agrees for the meeting to be recorded, the inspectors will present in front of the video camera, one by one, the inspection cards of the team members, as well as the service order; a presentation that will last at least 10 (ten) seconds for each document.




• If the taxpayer/payer does not agree for the online meeting to be recorded, a "minute" will be prepared that will include the details of each member of the tax inspection team who will identify himself/herself.

c. If the tax inspection starts at the taxpayer/payer's headquarters (or in any other place established by mutual agreement with the taxpayer/payer), the tax authorities shall present the taxpayer/payer the inspection identification card and the service order signed by the head of the tax authority fiscal inspection.

1. 4) Approval of the procedures for implementing the mandatory automatic exchange of information reported by Platform Operators




In the Official Gazette no. 743 dated August 16, 2023, it was published the NAFA Order no. 1226/2023 approving the following:




• the procedure for verifying that platform operators comply with the fiscal due diligence procedure and the reporting procedures provided by the Fiscal Procedure Code.




• the procedure aimed at subsequent communication with platform operators who have the obligation to report, regarding complete and correct reporting.




• the model of the form "Notification regarding incorrect and/or incomplete information provided by platform operators who have the obligation to report".








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