VAT Package 2010 - Mazars - Romania

VAT Package 2010 - New rules as of 1 January 2010
2010 brings together important changes in the VAT field at the European level.
On 12 February 2008, the European Union Council adopted the so-called „VAT Package”. This includes the followings: Council Directive 2008/8/EC, Council Directive 2008/9/EC and the Council Regulation (EC) No 143/2008 and will be transposed into the domestic VAT legislation of each Member State, including the Romanian one. However, the VAT Package will be implemented gradually: 1 January 2010, 1 January 2011, 1 January 2013, 1 January 2015.

Main changes

entering into force on 1 January 2010 due to the VAT Package:

1. The place of supply of services

• Under the general rule, the place of taxation becomes the place of consumption

• The recipient - taxable person will be obliged to account for the VAT under the reverse charge mechanism

• The services supplied to non-taxable customers remain taxable according to the current rule - at the place where the supplier is established

• If these services are provided from a fixed establishment in another country, the place of supply is where that fixed establishment is located

• All recipients- taxable persons shall be considered as taxable persons for all services received

• Non-taxable legal persons which are registered for VAT shall be considered taxable persons for services received.

2. New compliance requirements for the intra-Community services

There will be introduced the requirement to file a new recapitulative statement, in which:

• the suppliers of taxable services shall fill in the recipients of their services and their specific VAT identification numbers and also the total amount of the services rendered to each of these customers

• it will be declared only the services which are effectively taxable in the Member State of the beneficiary.

3. New procedures for VAT refunds to taxable persons acquiring goods or services outside the member state where they are established

The refund claims shall be submitted as follows:

• directly in the Member State of their establishment

• electronically

• within nine months from the end of the year in which the VAT becomes chargeable, compared to six months as in present.

The tax authorities are required to make the reimbursements in four months as opposed to six months as in present. If not, they will also have to pay penalties.

How will such changes affect your business ?

• The first deadline for the submission of the new VAT return on intra-Community services has been set for 15 February 2010.

• Taxable services supplied to or received from EU taxable persons have to be identified because it is only such services that are included in the new VAT return.

• Do you know whether the services provided by your company are taxable in the Member State where the beneficiary resides? Because it is only such services that should be declared.

• Are you sure of beneficiary’s Member State of residence so as to appropriately apply the VAT treatment and correctly issue the invoices?

• Is the information system of your company updated in order to select such information and accurately issue the related invoices?

How can we help you?

To be of support to you, Mazars offers you a customised package of services aiming at identifying the impact of the above-referenced legislative changes on your business. Such package, called VAT Scan 2010, entails the following:

• preliminary interview intending to identify the impact of these legislative changes on the transactions performed by your company; and

• preparation of a report regarding the measures which should be undertaken so as to comply with the new VAT rules and render the operations performed by your company more efficient.

For any supplementary information regarding our related services, please open the files below:

Mazars - VAT SCAN 2010_EN (.pdf - 221.43 kB)

Mazars - VAT SCAN 2010_RO (.pdf - 314.17 kB)

Mazars - VAT SCAN 2010_DE (.pdf - 328.21 kB)

Mazars - VAT SCAN 2010_FR (.pdf - 296.83 kB)