Lohn contracts take place between two foreign parties, being an international contract. The parties shall consist of the exporter and the importer or the authorizing officer and the executor.
From the point of view of VAT, these transactions are considered as non-transfers, provided that the goods, after processing, are re-dispatched to the taxable person from whom they were originally shipped or transported.
In order to highlight these operations, the sender of the goods must draw up the register of non-transfers, and the beneficiary (executor) must complete the register of goods received.
Regarding the waste obtained from the processing of goods received in lohn or products obtained that do not meet the quality requirements imposed by the beneficiary, whether they can be used or not, even if they do not leave Romania, they do not change the VAT regime, remaining nontransfer.
If the owner orders their destruction on the territory of Romania, proof of this destruction must be provided. Another situation is that of the samples received for testing before the actual production of the goods stipulated in the lease contract.
The import or intra-community acquisition related to these samples with negligible value is exempted from the payment of VAT in the situation where they can be used only for obtaining orders for goods such as those represented by samples.
From the point of view of declaring the above mentioned operations, the only one that is declared both in the VAT return and in the recapitulative statement is the invoice for the provision of processing services issued by the executor to the contractor.