Documents / ANAF amends evaluation criteria in procedure for granting VAT code

de Victor Bratu | 2.10.2017 .

After the withdrawal of the “intent and ability” criterion for doing business and following the pressure of the business community, ANAF published on Thursday evening the draft of a new order on setting criteria for VAT registration.

The new draft order maintains the stipulation that the tax authority will not register for VAT purposes, respectively cancel the VAT registration if the taxable persons have a high tax risk.

According to the draft, each of the risk criteria set by ANAF (set out in Annex 5 and Annex 6 of the draft order) corresponds to a negative score. The final score that determines the level of the tax risk is calculated by summing up the scores for each risk criterion plus 100 points.

The taxable person has a high tax risk – namely, it is not given a VAT code – if the score is below 51 points.

Mention: Local branches of taxable legal persons having the headquarters of their economic activity outside Romania, which have the obligation to register for VAT purposes in Romania, according to the provisions of art. 316 par. (2) of the Tax Code, are not subject to this order’s provisions.

In the press release issued on Thursday, ANAF ensures that administrative procedures for registering/cancelling the VAT registration will become “more explicit, transparent and easier for taxpayers” – a big step forward, given that the details of the initial order issued in the period when the ANAF leadership was held by Gelu Stefan Diaconu have been “secreted” so that “fraudsters” could not know them and thus try to cheat the tax authority.

However, the critical change would occur if ANAF would abandon all the controversial provisions. Only two examples:

  • companies must already have employees when they request a VAT code, that is, from the moment they are established
  • lack of a qualification is considered a risk

Risk criteria

The first criteria for assessing the tax risk of taxable persons applying for a VAT registration are set out in Annex 5. They refer to:

Headquarters.

  • The registered office of the taxable person being analysed is established at the lawyer’s place of business and is used in a legal assistance contract and the taxable person analysed does not have headquarters/places of business.
  • The registered office of the taxable person analysed is established at the premises of a natural person who carries out liberal professions (exclusively a lawyer), a self-employed person (PFA), an individual enterprise, a family enterprise (IF), a legal person, as well as at a property of a natural person and is used under a commodity/lease/sublease agreement for a period of less than or equal to one year, and the taxable person analysed does not have a registered office/subsidiary.
  • The registered office of the taxable person analysed is established at the premises of a natural person carrying out liberal professions, a self-employed person (PFA), an individual enterprise (II), a family enterprise (IF), a legal person as well as at the property of a natural person and is used under a commodity/lease/ sublease agreement for a period of less than or equal to one year, and the taxable person concerned has headquarters/places of business under a commodity/ lease/ sublease agreements for a period less than or equal to one year.
  • The registered office of the taxable person analysed is established at the premises of a natural person carrying out liberal professions, a self-employed person (PFA), an individual enterprise (II), a family enterprise (IF), a legal person as well as at the property of a natural person and is used under a commodity/lease/ sublease agreement for a period of less than or equal to one year and the taxable person analysed has its headquarters/places of business under commodity/lease/sublease agreements for a period of more than one year.

Insolvency / Bankruptcy

  • At least one of the co-partners and/or administrators of the taxable legal person analysed holds or has held the capacity of shareholder/co-partner/administrator/ holder/member of at least one taxable legal person for which insolvency/bankruptcy proceedings have been initiated in the last five fiscal years and the taxable person has records of outstanding tax liabilities.

Tax inactivity

  • At least one of the co-partners and/or administrators of the taxable person analysed has the status of shareholder/ co-partner/ administrator/ holder/ member of at least one taxable legal person declared inactive from the tax point of view in the last five fiscal years without being reactivated.
  • At least one of the co-partners and/or administrators of the taxable person analysed has held the capacity of shareholder/co-partner/ administrator/ holder/ member of at least three taxable legal persons declared inactive in the last five fiscal years.

Temporary inactivity at Trade Register

  • At least one of the co-partners and/ or administrators of the taxable person analysed has the status of shareholder/ co-partner/ administrator/ holder/ member of at least two taxable legal persons having the legal term of temporary inactivity registered at the Trade Register expired without being reactivated.

Rejection/ cancellation of VAT registration

  • At least one of the co-partners and/ or administrators of the taxable person analysed holds or held the capacity of shareholder/ co-partner/ administrator/ holder/ member of at least one taxable person whose VAT registration has been cancelled during the last five full fiscal years.
  • At least one of the co-partner and/ or administrators of the taxable person analysed holds or held the capacity of shareholder/ co-partner/ administrator of at least one taxable legal person for which, since 01.02.2015, the VAT registration request has been rejected or the VAT registration cancelled following the evaluation procedure and the situation is currently maintained.

Outstanding tax liabilities

  • The total amount of outstanding principal tax liabilities recorded by the taxable persons to which the co-partners and/or administrators of the taxable person analysed have the status of shareholder/ co-partner/ administrator/ holder/ member and the co-partners (legal persons) and/ or administrators (legal entities) of the taxable person analysed, is higher than or equal to 50,000 lei.
  • The total amount of the outstanding tax liabilities recorded by the taxable persons to which the co-partners and/ or administrators of the taxable person analysed have held, in the last five complete fiscal years, the status of shareholder/ co-partner/ administrator /holder /member, is more than or equal to 50,000 lei.

Offenses                                           

  • At least one of the co-partners and/ or administrators of the taxable person analysed and/or at least one of the taxable persons where they hold or held the capacity of shareholder/ associate/ administrator/ holder/ member, have acts registered in the tax record of an offense nature that is stipulated in the government decisions 1000/2015 on the acts about which information is registered in the taxpayers’ tax records, according to the legislation in force.

Crimes

  • At least one of the co-partners of the taxable person analysed and/or at least one of the taxable persons to which the co-partners and/ or administrators of the taxable person analysed hold or held the capacity of shareholder/ co-partner/ administrator/ holder/ member have crimes and/ or acts registered in the criminal record, referred to in art. 4 par. (4) letter a) from O.G. 39/2015 on the fiscal record, approved with amendments by Law no. 327/2015.

Income

  • The administrators of the taxable person analysed did not obtain any income in the last 12 months prior to the month in which the application for the VAT registration is filed, respectively in the previous fiscal year, where applicable.
  • The administrators of the taxable person analysed have obtained in the last 12 months prior the application for the VAT registration, only salary incomes predominantly in value, by caring out occupations corresponding to the major group 9 (according to COR ISCO08), namely unskilled workers.

Tax residence

  • At least one of the administrators of the taxable person analysed is a foreign citizen who does not have a fiscal residence in Romania and the share capital of the taxable person analysed is below 45,000 lei.

Bank account

  • The taxable person analysed does not have a bank account or at least one of the persons empowered by the taxable person analysed to carry out operations with its bank accounts does not have the status of administrator/ co-partner/ employee.

Activity

  • The taxable person analysed does not carry out economic activities within the space intended to be the registered offices and/or the space of the secondary offices, nor outside them.

Third parties

  • The taxable person analysed carries out only economic activities outside the registered offices/ place of business and the secondary offices (places of activity)

Accounting services

  • The taxable person analysed does not designate a person to lead the accounting department or has designated a person who does not meet the provisions of art. 10 par. (2) of the Accounting Law 82/1991, republished, as subsequently amended and supplemented, if the accounting activity is organized and managed in separate departments, including the situation in which the taxable person analysed does not have contracts for services with legal entities/individuals that are CECCAR active members if the accounting activity is organized and managed based on accounting service contracts.

Employees

  • The taxable person analysed does not have individual employment contracts concluded at the time of the analysis.

Separated, in Annex 6, ANAF introduces the notion of inconsistencies among the risk criteria.

The taxable person analysed has significant inconsistencies between the information mentioned in its own tax/ information/ recapitulative statements, respectively, between the information recorded in its own tax/ information/ recapitulative statements in relation to its business partners (suppliers/ customers), including significant discrepancies found in the analysis of the information provided by third parties, other than those relating to tax/ informative/ recapitulative statements,” states the text.

Unlike the other evaluation criteria, the appendix does not detail the exact meaning of the expression “significant inconsistencies”.

It is also quite unclear what the information provided by third parties “other than those relating to tax/ informative/ recapitulative statements” might be.

Publicat la data de 2.10.2017 .

Lasa un comentariu


SIMILAR ARTICLES

Marin Pana

Advance of real wage – a list of anomalies: Administration exceeds health domain by 44%, manufacturing sector drops to less than 90% of economy average

The average gross salary announced by INS for August 2017 was 3,290 lei, by 12% higher than in the previous month The net average wage was 2,364 lei, or 514 euros at the average exchange rate of September 2017 (the actual month of payment) or 1,004 euros in terms of purchasing power at the EU average prices Compared to the reference month of October 1990, the real monthly earning index ...
Read more »

Victor Bratu

Split VAT: What does not Government want to see in VAT fraud and why it has a different definition for the VAT gap than the European Commission

When it comes to the "VAT gap", the Romanian Government and the European Commission have different views on the elements contributing to this indicator Even different definitions The difference between the Government's approach and the Commission’s approach sets out two versions, both having an impact on the business environment, which is required to apply the split VAT: either the split ...
Read more »

Victor Bratu

Analysis person by person: Government members who decided on split VAT and protect their own companies of VAT split

Photo caption: Prime Minister Mihai Tudose publicly supports split VAT but the company in which he has declared interests does not support Mihai Tudose In the democracy, the power of example is a way often used by state officials to demonstrate the fairness of the decisions assumed We do not see too often that happening in Romania, nor does it happen in the specific case of the changes ...
Read more »

Mariana Bechir

Romania could become the only EU country where social contributions are paid only by employees

If the PSD-ALDE alliance does not reconsider the measure of transferring all social contributions to the employees, Romania will be the first EU country where employers will no longer contribute to financing the social security system In the table below, it is noted that all EU member states have divided this burden between the employer and the employee, and in most cases, the contributions ...
Read more »

Razvan Diaconu

BNR: Arguments of a monetary policy concession to government policy errors

BNR decided on Tuesday to narrow the "symmetrical corridor" between the interest rates of the standing facilities around the monetary policy rate (175%, unchanged), by increasing the deposit interest rate and lowering the Lombard rate At the same time, BNR also injected liquidity on the money market amounted to more than RON 9 billion by repo-type operations, buying government bonds from ...
Read more »


NEWS

European Commission’s announcement to Government and Parliament: Gas transactions market cannot be monopolized by OPCOM

Romania risks the infringement procedure if the Parliament adopts definitive amendments to the Emergency Ordinance 64/2017 on the natural gas market, which provides for the ... Read more

Ministry of Finance has sold euro bonds worth one billion euros on foreign market

The Ministry of Finance (MFP) placed euro bonds worth EUR 1 billion on the foreign market by reopening the issue with the maturity of 10 ... Read more

Ford launches production of EcoSport in Craiova. Total investment in Romania reaches over EUR 1.2 billion

Ford officially launched the production of the EcoSport SUV at the plant in Craiova, raising total investments in Romania to about EUR 1.2 billion, since ... Read more

VAT Directive - Reform plan: European Commission proposes to abolish zero rate on cross-border purchases

Pierre Moscovici, the European Commissioner for Economic and Financial Affairs, Taxation and Customs, announced on Wednesday in Brussels the proposals of the European Commission for ... Read more

Total political control: Deputy Iulian Iancu insists on offering monopoly to OPCOM on gas trading

OPCOM will have a monopoly on the operation of centralized natural gas markets, and producers will be required to trade, as of January 1, 2018, ... Read more

Romania - world champion of frontier markets in 2017, by return on stock exchange investment

Evolution of BET-TR since the beginning of the year The Romanian capital market had the highest growth among all 23 countries in the portfolio of ... Read more

Investment of the poor: MFP sells one-lei treasury bonds to population and money will be blocked until maturity

The Ministry of Public Finance (MFP) wants to raise money to the budget, leu by leu and says that treasury bills, whose issues have already ... Read more

Strong warning from European Commissioner for Energy: Regulators must be completely independent. BRUA continues

The European Commission monitors the real independence of the regulators in the member states and will take all necessary steps to ensure that it is ... Read more

China's sovereign wealth fund, owner of four logistics parks in Romania

The European Commission has approved the EUR 12 billion deal by which China Investment Corporation, China’s sovereign wealth fund, has taken over the assets of ... Read more

Transelectrica announces that it lends money for investments after Government seized its financial reserves

The national energy system operator, Transelectrica, a state-owned company operating the National Energy System (SEN), tells shareholders that the distribution of additional ROL 171 million ... Read more

Oracle transfers most of its European hardware support activities to Romania

Oracle, the world’s largest software developer, will transfer most of the European hardware support activities to Romania, to reduce current costs. The process of closing ... Read more

LSE Study: Ten Romanian companies can inspire Europe with their rhythm of growth. Meanings of this selection

London Stock Exchange (LSE) analysts have identified ten Romanian companies among the 1,000 small and mid-sized firms in Europe that can inspire the others with ... Read more

Eastern European countries’ exports of weapons increase. Not Romania’s ones

Producers of bullets, assault weapons, and rockets from former communist countries in Eastern Europe saw a significant increase in orders following the conflicts in the ... Read more

European Commissioner: Brexit will decrease budget for Regional Policy by 10-12%. Member states will have to cover these amounts

The budget allocated by the EU to the Regional Policy will decrease by approximately 10-12% after the exit of the UK from the Union, said ... Read more

Government prepares to guarantee unchanged royalty regime throughout offshore concession contracts

The Government is trying to speed up the implementation of the offshore oil operations. There is a bill at SGG that assures companies having oil ... Read more

Consultations on security topics between Poland, Romania and Turkey with participation of Jens Stoltenberg

Preparations for the NATO Summit in 2018 and the reform of the allied command structures were the main topics for the last week’s meeting, on ... Read more

Representatives of prosecutors across the country reject Minister's proposals to amend justice laws

Representatives of prosecutors from all over the country have rejected amendments to the justice laws proposed by Minister Tudorel Toader, General Prosecutor Augustin Lazar said ... Read more

Average monthly spending per household in 2016: Education - 4 lei, Telephone services - 90 lei

Last year, a household spent a monthly average of 4.05 lei for education, 90.71 lei for telephone services and 26.26 lei for health services, according ... Read more

Cost of state indebtedness rises and drags euro exchange rate with it

Government’s hunger for money causes a growing demand on the market, which increases the borrowing cost for the state and encourages distrust in the national ... Read more

Mihai Tudose about royalties: A new law to enter into force on January 1, 2018; royalty level will "depend on companies’ behaviour" in terms of prices pushed by the new excise duty

Prime Minister Mihai Tudose has announced the date of January 1, 2018, as a “certain” term for the entry into force of a long-delayed new ... Read more

File / Share of French investments in Romanian industry decreased compared to 2007. Investment in agriculture and utilities increased

The share of direct investment (FDI) made by French companies in the Romanian industry fell from 56% of total French FDI in 2007 to 46% ... Read more

Prime Minister Mihai Tudose - threats and warnings to banks and oil companies: Romantic period has passed

Prime Minister Mihai Tudose has released several strong signals to banks and oil companies. He says that he is willing to take major risks in ... Read more

MApN states its availability to buy US attack helicopters

Defence Minister Adrian Tutuianu has signed on Wednesday a letter of intent on price and availability regarding the purchase of attack helicopters produced by Bell ... Read more

Minister Ionut Misa: Salary growth to increase public pension fund deficit by 22% in 2018 compared to 2017

The deficit of the public pension fund would be 17.2 billion lei in 2018, up 22% from 14.1 billion lei this year because of the ... Read more