In the Official Gazette no.1144 of 28 November 2022 was published OpANAF no 2053/2022 for the approval of the Procedure for the organization of the Register of the purchases of dwellings with reduced VAT rate of 5%, starting from 1 January 2023.
We remind that, by OG no.16/2022, new legal provisions were adopted regarding the supply of social housing with 5% VAT rate, applicable from January 1st 2023.
From 01 January 2023, the sale price of a social housing is maximum 600.000 lei excluding VAT. An acquirer (natural person or family) is entitled to purchase a single dwelling at 5% VAT.
We emphasize that the other conditions of substance and form are maintained, i.e. the useful surface must be a maximum of 120 metres, and at the date of sale, the dwelling must be habitable “as such”.
Thus, from 1 January 2023, housing delivered as part of the social policy (VAT rate 5%) means the delivery of housing with a useful surface of maximum 120 square meters, excluding household annexes, whose value, including the land on which they are built, does not exceed the amount of 600,000 lei, excluding value added tax, purchased by individuals individually or jointly with another individual/other individuals.
The useful surface of the dwelling is the one defined by the Law no.114/1996, republished, with subsequent amendments and additions. Household annexes are those defined by Law no. 50/1991, republished, with subsequent amendments and additions. The reduced rate applies only in the case of dwellings which at the time of delivery can be inhabited as such. Any natural person may purchase, starting from 1 January 2023, individually or jointly with another natural person/other natural persons, a single dwelling the value of which does not exceed 600,000 lei, excluding VAT, at the reduced rate of 5%.
In the Official Gazette no.1144 of 28 November 2022 was published OpANAF no 2053/2022 for the approval of the Procedure for the organization of the Register of the purchases of dwellings with reduced VAT rate of 5%, starting from 1 January 2023.
Also, by article III of OG no. 16/2022, transitional measures have been provided for those social housing for which advance payments have been made in 2022, but the deadline for completion / delivery of the housing is in 2023.
Thus, a buyer, individual or family, if he pays one or more advances in 2022 for social housing with a price up to 450.000 lei, has the right to purchase in 2023 an unlimited number of social housing with a price up to 450.000 lei with a VAT rate of 5%.
If in 2022 a down payment has been paid for a social housing with a price between 450.000 lei and 700.000 lei, there is the right to purchase one social housing with a VAT rate of 5% with a price up to 700.000 lei excluding VAT.
The purpose of the Register is to keep records of the sale of these social housing units at reduced VAT rates in order to comply with the condition that sales are limited to one unit per person.
According to Order 2053/2022, the Register is organised in electronic format and is managed with the help of the computer application provided by the National Centre for Financial Information of the Ministry of Finance
The guide on the access of notaries public to the register and the way to use it are elaborated by the National Centre for Financial Information, in consultation with the National Union of Notaries Public of Romania, and are made available to notaries public through the National Union of Notaries Public of Romania.
The register is completed by notaries public on the date of authentication of legal acts between living persons concerning the transfer of ownership of dwellings whose value, including the land on which they are built, does not exceed 600,000 lei, excluding value added tax, purchased by individuals individually or jointly with another individual/other individuals, for which the reduced VAT rate of 5% applies.
The register is used in the case where the transferor of the right of ownership of the dwelling is registered for VAT purposes in Romania, according to article 316 of the Fiscal Code, as well as in the case where the VAT registration code of the transferor has been cancelled according to article 316 paragraph (11) letter a), c)-e) and h) of the Fiscal Code.
According to Order 2053/2022, the register contains the following information:
a) identification data of the acquirer/dodgers natural person(s);
b) the identification data of the transferor(s) of ownership;
c) the full address of the dwelling purchased at the reduced VAT rate of 5%, in accordance with Article 291 paragraph (3) letter c) point 3 of the Fiscal Code;
d) the value, exclusive of VAT, at which the economic transaction transferring the right of ownership of the dwelling, including the land on which it is built, was concluded;
e) the number and date of the notarial deed authenticating the legal act between living persons concerning the transfer of ownership;
f) the identification data of the notary public who authenticated the legal act between living persons concerning the transfer of ownership;
g) the identification data of the notary public who carried out the registration in the register of the legal act between living persons concerning the transfer of ownership, if the registration is carried out by a notary associated with the notary who authenticated the act;
h) the date and registration number of the entry in the register, which are automatically generated by the computer application.
The normative act stipulates that, in 2023, notaries shall also complete the register with the information from the inter vivos legal acts authenticated in 2023, which have as their object the transfer of the right of ownership for dwellings whose value, including the land on which they are built, exceeds the amount of 600,000 lei, but does not exceed the amount of 700. 000 lei, excluding value added tax, acquired by individuals individually or jointly with another individual/other individuals, if they have concluded before January 1, 2023 legal acts between living persons, the object of which is the payment of an advance representing the partial or full payment of the consideration for the acquisition of such a dwelling.
Legal basis:
-ANAF Order no.2053/2022 for the approval of the Procedure for the organisation of the Register of purchases of dwellings with a reduced VAT rate of 5%, starting from 1 January 2023.
-Fiscal Code (approved by Law no.227/2015, published in MO no.688 of 10.09.2015), with subsequent amendments and additions;
-Methodological Norms for the application of the Tax Code (approved by HG no.1/2016);
-Law 82/1991 on Accounting – republished, as amended and supplemented.