FiNNEWS, Legislative, No. 9, 2018
- Monday, 3 September 2018
- New regulations in the POS payment/other modern solutions field
- Social security and health contributions settlement procedure for 2017
- Procedure for the ex officio assessment of the income tax
- New legislative proposals in the fiscal area
- Amendment of the procedure for registering energy products operators
New regulations in the POS payment/other modern solutions field
Law no. 191 of July 19, 2018 amending the Government Emergency Ordinance no.193/2002 regarding the introduction of modern payment systems (Published in the Official Gazette No. 642 of July 24, 2018)
• Retail and wholesale legal persons and also service providers, that have an annual turnover exceeding the RON equivalent of EUR 50,00, are obligated to accept as payment method debit and credit cards through a POS terminal and/or other modern acceptance solutions.
• Before the introduction of the legal act, the ceiling was of EUR 10,000 and only retail legal persons were affected.
• These legal persons will be able to provide the cash advance service at payment terminals based on the agreements concluded with the accepting institutions (previously, they were obliged to have a POS).
• The advance is highlighted distinctly on the receipt issued by the payment terminal and cannot exceed RON 200. The transactions corresponding to the cash advance are assimilated to ATM withdrawals, and the fees are set based on the agreements concluded between the parties and cannot exceed 1% of the advance value.
• Institutions that accept card are obliged to install the POS terminals within maximum 30 days as of the request of the economic operators, public institutions, legal persons, as well as the above-mentioned traders.
The expenses related to the purchase and set up of payment terminals will be the responsibility of the accepting institutions, and the expenses for the management and operation of POS terminals will be set based on the agreement concluded with the previously mentioned institutions.
Social security and health contributions settlement procedure for 2017
Order of the NAFA President no. 1701 of July 4, 2018 for the approval of the Procedure on establishing and settling of the social security and health contributions owed by natural persons, as well as Form 631 “Annual tax assessment setting the social security and health contribution” (Published in the Official Gazette No. 672 of August 2, 2018)
• The Order provisions apply for establishing the social security and health contributions due for revenues achieved by natural persons in 2017.
• We would like to recall that:
- The final amount corresponding to health contributions for the year 2017 is calculated by the fiscal body for the following categories of income:
b) Agricultural, forestry, pisciculture;
c) Associations with legal persons;
d) rental and leasing: investment income;
e) other sources.
- The final amount corresponding to social security contributions for the year 2017 is calculated by the fiscal body for self-employed income, calculated with the actual income method, meaning:
a) Income from production, commerce, service provision activities;
b) Income from liberal professions;
Income from intellectual property rights.
Procedure for the ex officio assessment of the income tax
Order of the NAFA President no. 1869 of July 31, 2018 for the approval of the Procedure on establishing ex officio the annual income tax for natural persons (Published in the Official Gazette No. 701 of August 10, 2018)
• According to art. 107 of the Fiscal Procedure Code, the failure to submit the tax return gives to the central competent fiscal body the right to establish ex officio the annual net income tax/ the annual tax owed, for each income source and category.
• Considering the recent legislative modifications, an update of the procedural provisions used was necessary.
• Thus, depending on the income category, there are provisions referring to the rules to estimate the taxable amount, the procedures applied by the fiscal body, and also their target dates.
• Also, the Form “Proceeding on the estimation of the taxable amount for the income of natural persons”, was approved.
Also, the Forms “Notice on the failure to submit on time the tax return” and “Notice on the failure to submit on time the tax return according to art. 107 par. (5) of Law no. 207/2015 on the Fiscal Procedure Code” were approved by Order of the NAFA President no. 3695/2016
New legislative proposals in the fiscal area
Project for the amendment of the Fiscal Code
Law proposal to amend and supplement the Fiscal Code published on August 27, 2018 on the official website of the Ministry of Public Finance
• This legal act is based on the necessity of transposing in the national VAT legislation, by December 31, 2018, the provisions of European Directive regarding the treatment of vouchers and certain obligations regarding the value added tax for the provision of services and remote sales of goods.
• Currently, there is no common regulatory framework in the member States regarding the VAT regime for vouchers, as Directive 2006/112/EC on the common VAT system does not contain provisions in this regard. In Romania there are provisions regarding the taxation of operation using vouchers in methodological norms for the application of Title VII of Law no. 277/2015 on the Fiscal Code, approved by Government Resolution no. 1/2016, as subsequently amended and supplemented. These rules were implemented based according to the case-law of the Court of Justice of the European Union in this field.
• At the same time, currently, taxable persons who do not reside in the European Union cannot apply the special regime for electronic, telecommunications, and broadcasting services if they have a VAT registration number issued in the European Union.
• Thus, specific rules regarding the VAT treatment for vouchers are set, for:
(i) Defining vouchers and their classification as single-purpose vouchers and multi-purpose vouchers;
(ii) The event giving rise to the VAT and the VAT regime applicable for the two categories of vouchers. So, for the single-purpose voucher, the tax becomes chargeable when the voucher is transferred, while for the multi-purpose voucher it becomes chargeable when the actual handover of goods takes place or when the services are provided.
The actual handover of goods/actual provision of services in exchange for a single-purpose voucher accepted as payment or part of a payment is not considered an independent transaction for the payment part covered by the voucher, while the other part of the payment that is not covered by the voucher, is considered an independent transaction.
For multi-purpose vouchers, the actual handover of goods/ actual provision of services results in the chargeability of value added tax, while the delivery of the voucher is not covered by VAT.
• The draft Act proposes the following amendments regarding electronic, telecommunications, and broadcasting services:
(i) to modify the place of provisions for electronic, telecommunications, and broadcasting services, provided by non-taxable persons from other EU member States, below the Eur 10,000 threshold;
The place of provision is currently at the beneficiary, regardless of the volume of services provided by the provider in the European Union. For the provision of electronic, telecommunications, and broadcasting services, by non-taxable persons from other EU member States, below the Eur 10,000 threshold, the place of provision will be the State of the provider, with the possibility for the provider to choose from the start the taxation in the beneficiary’s member State. For the provisions of services above this threshold, the current rules will apply, meaning the taxation will be made in the beneficiary’s member State.
(ii) To apply the invoicing rules from the provider’s member State, for the services for which the special regime for electronic, telecommunications, and broadcasting services applies;
(iii) The taxable person not residing in the European Union definition is amended.
According to the draft, the provisions are applicable as of January 1, 2019.
Draft Act governing the monography of accounting entries regarding the quarterly distribution of dividends
Draft Order for supplementing accounting regulations published on August 27, 2018 on the official page of the Ministry of Public Finances
This Order complements the accounting regulations regarding the distribution of dividends during the financial year, as follows:
- The entities that opted according to the law for the distribution of dividends during the financial year record the distribution in the account 463 “Claims relating to dividends distributed during the financial year”.
- The entities that opted according to the law for the quarterly distribution of dividends prepare interim financial statements with the balance sheet and profit and loss account. Income and expenses reported are set cumulated from the beginning of the financial year until the end of the quarter for which the entity chose to distribute the dividends.
Interim financial statements represent special purpose financial statements, being intended for the distribution of dividends within the financial year and are prepared based on the trail balance. In order to prepare these financial statements, elements such as assets, liabilities and equity are identified. The results of this inventory and of the evaluation are recorded in the accounts, according to the applicable accounting regulations.
Interim financial statements will be submitted within 30 days as of their approval by the Company Shareholders' General Assembly.
Draft regarding new measures in the economic and financial inspection field
Ordinance regarding the regulation of measures in the economic and financial inspection field (Published on August 23, 2018)
• Introduction of new provisions regarding:
- Control of the compliance mode of the use of financial means and material goods received by beneficiaries of sponsorships and patronage of the arts;
- Control of the compliance mode of the use of funds received by the beneficiaries of the sums redirected based on Title IV of Law no. 227/2015 on the Fiscal Code, with subsequent amendments, for the purpose for which they were incorporated or operate;
- Control regarding the reasoning, granting and substantiation of the amounts received from the State consolidated general budget.
The above-mentioned controls are carried out by the Ministry of Public Finances through its financial and economic inspection body.
Amendment of the procedure for registering energy products operators
Order of the NAFA President no. 1960 of August 6, 2018 on the amendment of the Order of the National Agency for Fiscal Administration President no. 1.849/2016 for the approval of the Procedure for registering economic operators in the wholesale and retail sector of energy products - petrol and diesel fuels, kerosene, liquefied petroleum gas and biofuels, as well as for the approval of the model and content of some forms, and the amendment of the Order of the National Agency for Fiscal Administration President no. 1.850/2016 for the approval of the Procedure for registering the wholesale distribution and trade of alcoholic beverages and manufactured tobacco, as well as for the approval of the model and content of some forms (Published in the Official Gazette No.700 of August 10, 2018)
• According to the Fiscal Code provisions, wholesale and retail economic operators that distribute and trade energy products - petrol and diesel fuels, kerosene, liquefied petroleum gas and biofuels, as well as those who distribute and trade alcoholic beverages and manufactured tobacco are obligated to register with the fiscal body.
• The registration of wholesale economic operators of energy products is made at the request of economic operators, for each wholesale warehouse, by submitting the Form “Request for registration/mentions of the wholesale distribution and trade activity of energy products”.
• The registration of wholesale economic operators of alcoholic beverages and manufactured tobacco is made at the request of the interested taxpayers, by submitting the Form “Request for registration and certification of the wholesale distribution and trading activity of alcoholic beverages and manufactured tobacco”.
• The Order contains amendments regarding the registration procedure, including the necessary conditions to be met.
• Economic operators that were registered for the wholesale, without storage, distribution and trade of energy products, as well as those registered for the wholesale, without storage, distribution and trade of alcoholic beverages and manufactured tobacco may submit, within 90 days as of the effective date of this Order, at the competent authority, a new registration application and the related documents.
At the expiry of the above-mention deadline, the certificates issued for the wholesale, without storage, distribution and trade of energy products, as well as for those registered for the wholesale, without storage, distribution and trade of alcoholic beverages and manufactured tobacco will no longer be valid.