Value added taxes, excise and custom duties can count up to a third of a company’s annual turnover. Hence, indirect taxes can have a significant impact on a company’s cash flow if they are not forecasted and managed properly. Indirect taxes raise significant risks to all kinds of businesses and, therefore, they require special focus and management.
Compliance with the wide range of indirect taxes, from VAT to excise / customs duties, requires quick thinking and immediate action. Mazars can help you fulfill your indirect tax obligations
Value Added Tax (VAT)
VAT is an immediate tax. VAT is increasingly complex and can impact directly on your bottom line, incurring hefty penalties if you get it wrong. An error in the planning phase may trigger adverse effects on the entire supply chain.
VAT is by far the most sensitive indirect tax. Even if the VAT regulations in the European Union countries are harmonized, there still are country specific requirements that any business must meet. Owing to flexible interpretations of the national or EU regulations, the liabilities arising out of the performance of your business need to be carefully assessed.
Our experienced team addresses compliance issues proactively to help you minimize the additional VAT liabilities as well as related penalties and interest, as well as the impact of transactions on other areas of the business like audit and tax.
Mazars can help you with:
- Advice on any type of national and cross-border transactions (cross-border analysis in cooperation with our colleagues from other offices of Mazars);
- Structuring of company operations/processes reflecting the normal way of doing business and mitigating any VAT exposure;
- VAT review;
- VAT registration in Romania (e.g. direct VAT registration of non-resident companies, registration of Romanian companies);
- VAT compliance services (e.g. preparation of sale/purchase ledgers, preparation of VAT returns and/or statements, review of the compliance procedures, etc.);
- Assistance during VAT audits, including representing / assisting the representatives of the company in discussions with the tax authorities;
- Drafting tax challenges against the assessment decisions issued by the tax authorities;
- Staff trainings on specific VAT issues;
- Refund of VAT to both resident and non-resident taxable persons, refund of the VAT paid abroad by Romanian entities;
- Assist the clients in obtaining opinions of the Ministry of Finance as well as binding rulings
- Day-to-day support.
Depending on the needs of its clients, Mazars can support them in Bucharest and throughout the country.
Excise Duties / Customs Duties
While some of excise duties are harmonized in the EU territory, others are not, being subject to national specific regulations. Compliance with all legal requirements and completion of all formalities represent key factors in mitigating unnecessary risks and cutting down on costs. Despite the trend to reduce trade barriers, customs duties still remain an area of high interest due to strict and countless regulations.
Mazars can help you with:
- Advice on the completion of excise duties formalities;
- Assistance in the process of obtaining tax warehouse authorizations as well as other authorizations;
- Excise tax reviews;
- Support during tax inspections and settlement of disputes with the Tax Authorities;
- Advice on the completion of customs formalities;
- Assisting the clients during the audits performed by the tax / customs authorities;
- Consultancy regarding tariff classification, preferential tariff treatment and no drawback rule.
- Consultancy on the economic regimes;
- Staff training on specific excise and customs duties issues;
- Assistance during the authorization as AEO.