On excise duties, the most important amendments are the modification of the methodology for establishing the RON/EUR exchange rate used for calculating excise duties in RON, the introduction of excise duties on certain „luxury products” (vehicles, jewelry, fur garments, yachts, etc.), the prohibition of sales with a free gift of excisable products which are subject to the marking regime with stamps or bands, setting up a maximum threshold of guarantee which must be placed by tax warehouse-keepers or by registered consignees, as well as the reduction of excise duties on still fermented beverages, other than beer and wine (from EUR 100/hl to EUR 10/hl, and to EUR 0/hl on cider or hydromel).
Consequently, starting from 1 January 2014, if the exchange rate established on the first working day of October and published in the Official Journal of the European Union is lower than that established on the first working day of October of the previous year, the highest exchange rate (i.e. the one previously established) will be used for calculating the excise duties into RON, also indexed by the annual average of the Consumer Price Index calculated in September of the previous year, communicated by the National Institute of Statistics, no later than 15 October.
Following this amendment, the exchange rate used in 2014 for calculating excise duties will not be the rate on 1 October 2013 (i.e. RON/EUR 4.4485) as provided by the Fiscal Code before the amendment, but the exchange rate on October 2012 (i.e. RON/EUR 4.5223) indexed by 104.77%. Consequently the exchange rate used in 2014 will be RON/EUR 4.7830.
On excise duties for luxury products, Valentin Durigu mentioned that economic operators (legal entities as well as individuals, if they perform commercial operations) will have to obtain an authorization for the intra-community acquisition of such products.
On customs, Valentin Durigu discussed the approval and entry into force of the Union Customs Code in November 2013, explaining that it will take effect starting from 1 May 2016. Companies need to start preparing to apply these new customs provisions, so they are ready in 2016.
For instance, companies which want to remain competitive, will have to obtain certification as Authorized Economic Operators (AEOs). From 1 May 2016, only AEOs will have access to the simplified customs clearance procedures and other customs authorizations. Given that it can take up to a year to obtain AEO status, companies need to begin the application process as soon as possible.
Moreover, since November 2013, due to the amendment of MPFO No. 500/2007, companies which obtain AEO status have been able to obtain an import VAT deferment payment certificate, which offers a cash flow benefit (because they will pay import VAT through the reverse charge mechanism).
Valentin also presented the results of a survey conducted by KPMG Tax Romania in 15 member states of the European Union, which highlighted how certain other EU customs provisions are implemented in Romania compared with other member states.
The survey highlighted positive aspects (for instance, AEOs can benefit from VAT deferment), but also less positive ones. For example, in Romania the deferment of customs duties payment procedure has not been implemented, while the on-site customs clearance procedure has some limitations, which makes it relatively unattractive. For instance, its application is restricted to customs working hours, and a prior notification must be sent to the customs authorities upon arrival/departure of goods.
The KPMG Tax Romania survey also suggests a simple fiscal measures such as the abolition of the requirement for companies established in other member states to register for VAT purposes in Romania if they are importing goods (e.g. from Asia) and then dispatching them to another member state. This would not reduce budget revenue, but if adopted by the authorities, could generate an increase in the flow of goods through Romania (especially through Constanta). This system applies in the member states with the biggest harbors - the Netherlands, Germany, and Belgium- and has led to higher flows of goods being imported through these harbors, with consequent benefits for the member states concerned.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. The information presented in this video was last updated at 20 January 2014. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.