Order no. 1891/2013 amends and completes Order of Minister of Public Finances No. 500/2007 and was published in the Official Journal of Romania No. 724, (25 November 2013).
With the changes, the import VAT payment deferment may be extended to other taxable persons (i.e., those registered for VAT purposes and that are holders of authorized economic operator (AEO)* or on-site customs clearance procedure authorizations).
*Authorized economic operator (AEO) is the economic operator established in the European Community, authorized by the customs authorities further to a specific audit. AEO is considered a reliable partner of the customs authorities and benefits of some customs simplifications.
The on-site customs clearance procedure is a simplified procedure to allow a placement of goods under a customs regime at the person’s premises or at other places designed and approved by the customs authorities.
The changes with the new order effectively connect and correlate to benefits granted by the customs law to those under the VAT law; therefore, this will eliminate the burden of making a VAT payment to the customs authorities while improving cash flow with respect to the import operations performed by the taxable persons listed below.
Under the order, in addition to the persons that in the previous calendar year, or in the last 12 months prior to the month in which the certificate is requested, have made imports from third territories and countries of which aggregate value is at least RON 100 millions, an import VAT deferment payment certificate may be granted to the following persons:
- AEOs registered for VAT purposes in Romania and that have obtained AEO certificate, in accordance with the customs provisions
- Taxable persons registered for VAT purposes in Romania and that have obtained an on-site customs clearance procedure authorization
The new procedures establish which documents must be submitted by these two new categories of persons (including a standard request using the template in Annex 1 to the order; a copy of the AEO certificate, or of the on-site customs clearance authorization; and a copy of the document certifying the status of taxable person registered for VAT purposes).
The deadline for issuing the authorization is 15 days from the date when the documents previously mentioned are submitted.
The VAT deferment payment certificate for customs purposes may be revoked in certain instances (e.g., when a condition leading to the issuance of the certificate is no longer fulfilled; when AEO status is suspended or withdrawn; when the on-site customs clearance authorization is suspended or withdrawn; or when the VAT registration number is canceled).
Companies authorized as AEOs, and that make imports followed by an exempt intra-Community supply are no longer required to guarantee the import VAT.
For more information, contact a professional with KPMG’s Trade & Customs practice:
John L. McLoughlin
Todd R. Smith
Luis A. Abad
Or your local KPMG Trade & Customs professional.