(P) Tax Flash: VAT, human capital, customs, state aid, accounting system, fiscal procedure code in Romania

Legislative summary, July 2011 VAT VAT exemptions (Order no. 2230/2011, published in the Official Gazette no. 498/13 July 2011) The Order brings certain amendments regarding the documents needed for the application of the VAT exemption for the export of goods and work on movable goods which subsequently are transported outside the Community. Moreover, in case of intra-community supplies of goods, if during a tax audit the tax authorities identify that the VAT ID number of the beneficiary was erroneously mentioned on the invoice, to benefit of the VAT exemption, the supplier is permitted during the audit to correct the invoice and the validity of the VAT ID of the beneficiary will be verified by the tax authorities. Human Capital Payment of salary tax (Order no. 2351/2011, published in the Official Gazette no. 464/1 July 2011) According to the clarifications brought by the Order, the salary tax due by the secondary offices shall be paid using the fiscal identification number attributed to the secondary offices, opened with the State Treasury office that administers the tax payers that have established the respective secondary offices. However, the outstanding amounts representing salary tax, not settled until July 2011, shall be paid using the fiscal identification number and Treasury account of the taxpayers that established the secondary offices. Foreign citizens’ regime in Romania (Law 157/2011, published in the Official Gazette 533/28 July 2011) The new law amends “permanent residence” to “long term residence”, imposes additional documentary requirements for work permit applications and sets out regulations for EU Blue Card applications. For more details, please refer to our Human Capital Alert no. 8 of August 2011. Customs Customs duty suspension for certain LCD monitors (Council Regulation no. 555 / 6 June 2011) The Council Regulation was issued to extend the customs duty suspension for certain LCD monitors, which expired on 31 December 2010, with retrospective effect for the period from 1 January 2011 up to 30 June 2011. Since the duty suspension expired on 31 December 2010, during the interim period (i.e. from 1 January 2011 until the date of the Council Regulation – 6 June 2011) importers were paying customs duty upon import of such LCD monitors. Based on this Council Regulation, the importers can now file refund claims with the customs authorities for the duty paid during the interim period. For more details, please refer to our Tax Alert no. 12 of July 2011.