Mini One Stop Shop (MOSS) – tax and accounting regulations

Starting with 01.01.2015, the VAT regime for electronic services delivered by taxable persons registered for VAT purposes was changed, cf. art. 153 of the Fiscal Code to natural / non-taxable persons from the European Union. If until now the invoices were issued with Romanian VAT with a rate of 24%, starting with 01.01.2015 the invoices must be issued with the VAT rate of the beneficiary, respectively from the Member State of consumption.

There are two options for declaring these operations:

Registration for VAT purposes in each country and filing tax returns there. Registration with the National Agency for Fiscal Administration in M1SS (Mini One Stop Shop) and filing VAT returns, quarterly, through this site. The payment of VAT will be made in a special account from where it will be transferred to the respective countries

Given that the first option is difficult to achieve, the second remains, the registration in the Mini One Stop Shop (M1SS) system. The system is a simplification measure taken following the amendment of the VAT rules on the place of supply, consisting in the fact that the service takes place in the Member State of the customer and not in the Member State of the supplier, avoiding registration in each Member State of consumption. A certificate for digital signature is required for registration in the M1SS system, the same as that used for the electronic filing of other tax returns. The registration is made on the ANAF website at www.anaf.ro.

The invoices will be issued with the VAT rate from the beneficiary’s country, natural / non-taxable person, the accounting registration being:

4111 Clients = 707 Income from sale of goods

4427 VAT collected

VAT collected will be cleared through the account 447, because the tax is due in the Member States of consumption, and not in Romania:

4427 VAT collected = 447 Special funds, taxes and assimilated payments

By payment, account 447 will be settled:

447 Special funds, taxes and assimilated payments = 5124 Bank accounts in foreign currency

Quarterly, by the 20th of the month following the quarter, the declaration 399 “Special VAT return, according to the Fiscal Code, art. 152.4 paragraph (7) and 152.5 paragraph (6)”, downloaded from the address https://static.anaf.ro/static/10/Anaf/Declaratii_R/399.html.

Declaration 399 is filed even if no transactions were carried out in that quarter and there are no amounts to declare.

The return 399 is completed in EURO, cumulated for each country of consumption, specifying the Member State of consumption, the VAT rate, the tax base and the amount of VAT. After validation without errors, the electronic submission is made on the ANAF website. The receipt received following the deposit shall indicate a unique reference number (type RO / RO Fiscal Code Qn.2015) to be specified on the payment order.

Payment will be made in EURO, by the 20th of the month following the quarter, to the bank account also mentioned in the receipt.

With regard to the record of such transactions, the taxable person not established in the Member State of consumption must draw up a sufficiently detailed statement of the services to which this special scheme applies to enable the competent tax authorities of the Member States of consumption to determine The aforementioned VAT is correct. These records shall be made available electronically, at the request of the competent tax authority, as well as the Member States of consumption. The non-established taxable person will keep these records for a period of 10 years from the end of the year in which the services were provided.