New VAT rules starting 1 January 2010
MAZARS ROMÂNIA S.R.L. - 6 October 2009
We are pleased to inform you that the year 2010 brings together important changes in the VAT field at the European level.
What is changing ?
On 12 February 2008, the European Union Council adopted the so-called „VAT Package". This includes the followings: Council Directive 2008/8/EC, Council Directive 2008/9/EC and the Council Regulation (EC) No 143/2008 and will be transposed into the domestic VAT legislation of each Member State, including the Romanian one. However, the VAT Package will be implemented gradually: 1 January 2010, 1 January 2011, 1 January 2013, 1 January 2015.
Hereinafter, we will expose the main changes which enter into force on 1 January 2010 due to the VAT Package.
1. The place of supply of services
Under the general rule, the place of taxation becomes the place of consumption
The recipient - taxable person will be obliged to account for the VAT under the reverse charge mechanism
The services supplied to non-taxable customers remain taxable according to the current rule- at the place where the supplier is established
If these services are provided from a fixed establishment in another country, the place of supply is where that fixed establishment is located
All recipients- taxable persons shall be considered as taxable persons for all services received
Non-taxable legal persons which are registered for VAT shall be considered taxable persons for services received.
2. New compliance requirements for the intra-Community services
There will be introduced the requirement to file a new recapitulative statement, in which:
the suppliers of taxable services shall fill in the recipients of their services and their specific VAT identification numbers and also the total amount of the services rendered to each of these customers
it will be declared only the services which are effectively taxable in the Member State of the beneficiary.
3. New procedures for VAT refunds to taxable persons acquiring goods or services outside the member state where they are established
The refund claims shall be submitted as follows:
directly in the Member State of their establishment
electronically
within nine months from the end of the year in which the VAT becomes chargeable, compared to six months as in present
The tax authorities are required to make the reimbursements in four months as opposed to six months as in present. If not, they will also have to pay penalties.
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