Situation:
An ABC SRL company receives an invoice, through a commercial platform (eMag), from another XYZ company from the Czech Republic (valid VIES code) – collaborator. The invoice received is in lei and with zero VAT rate.
What is the tax treatment, from the point of view of VAT?
What statements are submitted?
Solution:
Considering the data mentioned above, Emag acted as an electronic platform in which the Czech supplier XYZ presented offers for the sale of its products, and the ABC buyer in Romania launched the purchase order.
Therefore, the supplier took over the order received through the platform, taking into account the fact that the beneficiary from Romania is a taxable person in Romania registered for VAT purposes in Romania, with a valid VAT code in the VIES system.
Thus, the supplier from the Czech Republic considered that he was making an intra-community delivery of goods, exempt from VAT in the Czech Republic because the goods were shipped from the Czech territory, on the Romanian territory through a specialized parcel/courier company.
Given that the goods were shipped from the Czech Republic to Romania, ABC SRL considers the operation as an intra-community acquisition of goods taxable in Romania.
Recall the definition of intra-Community goods in Article 273 “Intra-Community acquisitions of goods” paragraph 1 of the Fiscal Code:
“The acquisition of the right to dispose, as an owner, of tangible movable goods sent or transported to the destination indicated by the buyer, by the supplier, by the buyer or by another person, on behalf of the supplier or the buyer, is considered an intra-community acquisition of goods, to a Member State other than that of departure of the shipment or dispatch of the goods “
In addition, according to Article 276 “Place of intra-Community acquisition of goods” paragraph 1, the place of intra-Community acquisition of goods is considered to be the place where the goods are found when the dispatch or transport of the goods ends.
Therefore, for the acquisition made, ABC SRL applies the reverse charge regime by using the standard 19% VAT rate on the value of the invoice received, even if the value of the goods (VAT tax base) is written in lei.
The value of the operation is reported, both by the VAT return code 300 at line 5 and 20, with carryover at line 5.1 and 20.1, and by the recapitulative statement code 390 VIES, with the symbol A.
For the application of this fiscal treatment from the point of view of VAT is relevant that the goods are shipped from the Czech territory, that the supplier acted as a taxable person with the registered office of the economic activity in the Czech Republic, and that the supplier has a valid VAT code issued by the Czech tax authority, without being in the special exemption regime in the Czech Republic, similar to the provisions of article 310 of the Fiscal Code applicable in Romania.
Legal basis:
– Fiscal Code (approved by Law no. 227/2015, published in the Official Gazette no. 688 of 10.09.2015), with subsequent amendments and completions;
– Fiscal Procedure Code (approved by Law no. 207/2015, published in the Official Gazette no. 547 of 23.07.2015), with subsequent amendments and completions;
– Methodological Norms for the application of the Fiscal Code (approved by HG no. 1/2016).