According to article 324 paragraph (14) of the Tax Code, the taxable person applying the VAT on collection system and exceeding during the current calendar year the limit of 4,500,000 lei is obliged to submit to the competent tax authorities, by the 20th inclusive of the month following the tax period in which the limit was exceeded, a notification showing the turnover, determined according to the provisions of article 282 paragraph (3), in order to change the system applied according to the provisions of article 282 paragraph (5).
According to the provisions of article 282 paragraph (3), letter a), the turnover for the calculation of the limit of 4.500.000 lei is constituted by the total value of the supplies of goods and services taxable and/or exempt from VAT, as well as the operations resulting from economic activities for which the place of supply is considered as being abroad, according to article 275 and 278, carried out during the calendar year.
According to the methodological rules for the application of the Tax Code, point 26 paragraph (4), when determining the turnover which serves as a reference for the calculation of the limit , provided for in Article 282 paragraph (3) letter a) of the Tax Code, the tax base entered on the lines of the tax return provided for in Article 323 of the Tax Code corresponding to taxable and/or VAT exempt operations according to Article 292 shall be taken into account, 294, 295 and 296 of the Fiscal Code, operations resulting from economic activities for which the place of supply is considered to be abroad in accordance with the provisions of Articles 275 and 278 of the Fiscal Code, as well as the corresponding regularisation rows.
Amounts entered in the rows of the statement relating to information data fields such as invoices issued after tax inspection, information on non-deductible or non-deductible VAT are not taken into account.
In the case of taxable persons who have applied the exemption scheme provided for in Article 310 of the Tax Code and who are registered for VAT purposes in accordance with Article 316 of the Tax Code, as well as in the case of taxable persons whose registration for VAT purposes is cancelled ex officio by the competent tax authorities in accordance with Article 316 paragraph (11) letter a)-e) and h) of the Tax Code and are subsequently registered in accordance with Article 316 paragraph (12) of the Tax Code, supplies of goods/services made during the period in which the taxable person did not have a VAT registration code according to Article 316 of the Tax Code are not taken into account in the calculation of turnover.
With regard to VAT collected, according to the provisions of Article 282 paragraph (7), the following rules apply to invoices issued by taxable persons before entering or leaving the VAT collection system:
a) in the case of invoices for the total consideration for the supply of goods or services issued before the date of entry into the VAT on collection system, whether or not they are collected, for which the chargeable event occurs after entry into the VAT on collection system, the provisions of paragraphs 3 and 5 shall not apply, in the case of invoices for the partial consideration for the supply of goods or services issued before the date of entry into the VAT on collection system, whether or not collected, for which the chargeable event occurs after the date of entry of the taxable person into the system, the provisions of paragraphs 3 and 5 shall apply for the differences to be invoiced after the date of entry of the taxable person into the VAT on collection system;
b) in the case of invoices for the total consideration for the supply of goods or services issued before the date of exit from the VAT collection system, whether or not they are collected, for which the chargeable event occurs after the date of exit from the VAT collection system, the system shall continue to apply, i.e. the chargeability of the tax shall be due in accordance with paragraphs 3 and 5. In the case of invoices for the partial consideration of the supply of goods or services issued before the date of exit from the VAT collection system, for which the chargeable event occurs after the date of exit of the taxable person from the VAT collection system, the provisions of paragraphs 3 and 5 shall apply only to the tax relating to the partial consideration of the supplies invoiced before the exit of the taxable person from the system.
The chargeable amount shall therefore become chargeable on the date of receipt of the full or partial consideration for the supply of goods or services.
According to article 299 paragraph (1) letter a) of the Tax Code, in order to exercise the right to deduct the tax, the taxable person must meet the following conditions:
- a) for the tax due or paid in respect of goods which have been or are to be supplied to him or services which have been or are to be provided to him for his benefit by a taxable person, he must hold an invoice issued in accordance with the provisions of Article 319, as well as proof of payment in the case of purchases made by taxable persons applying the VAT on collection system or by taxable persons who purchase goods/services from taxable persons during the period in which they apply the VAT on collection system;
Thus, for unpaid invoices, VAT will be deducted on the date of payment.
Submission of the notification for application/withdrawal of the VAT collection system
For the declaration of exit from the VAT on collection system, the D700 must be submitted within 20 days of the month following the tax period in which the limit was exceeded.
Please note that the latest version of the PDF inteligent a D700 is dated 10 January 2023:
Legal basis:
-Fiscal Code (approved by Law no.227/2015, published in the Official Gazette no.688 of 10.09.2015), as amended and supplemented;
-Methodological Norms for the application of the Tax Code (approved by Government Decision no.1/2016);
-www.anaf.ro