Exchange rates required for the calculation of new tax limits:
- Exchange rate published on 31.12.2021 for eur: 4,9481 lei / eur.
- Exchange rate valid for 31.12.2021 (published by BNR on 30.12.2021): 4,9486 lei / eur.
- Average annual exchange rate published by the BNR for 2021: 4.9204 lei / eur
1 The limit for employment in micro-enterprises – turnover below 1,000,000 euros
According to the regulations in force, the basic condition of a company to be a taxpayer on the income tax of micro-enterprises in 2022 is that on 31.12.2021 to have realized incomes that did not exceed the RON equivalent of 1,000,000 euros.
The exchange rate for determining the euro equivalent is the one valid at the end of the financial year in which the income was recorded (Article 47 paragraph 1 letter c of the CF).
Applied exchange rate: 4,9481 lei / eur
Micro limit: 4,948,100 lei.
Extract from the detailed rules for the application of the CF: Point 1, for the application of Article 47(1)(c) of the Fiscal Code (CF):
“(1) For the classification in the condition regarding the level of incomes realized in the previous year, provided in article 47 paragraph (1) letter c) of the Fiscal Code, the same incomes shall be taken into account which constitute the taxable base provided in article 53 of the Fiscal Code and the exchange rate for determining the euro equivalent shall be at the close of the same financial year.
(2) Romanian legal entities that meet the conditions provided in Article 47 paragraph (1) of the Fiscal Code and that carry out as main or secondary activity the activities corresponding to the CAEN codes provided by Law no. 170/2016 on the specific tax of certain activities apply the provisions of Title III – The tax on the income of the micro-enterprises from the Fiscal Code ”.
Important: the limit is not recalculated according to the number of months of activity.
When determining the turnover, the same incomes will be taken into account, which constitute the taxable base provided in article 53 of the Fiscal Code.
- The limit regarding the obligation to register for VAT purposes
The limit for which there is the obligation to register as a VAT payer – turnover: 88,500 eur. Specifically, the taxable person established in Romania whose annual turnover, declared or realized, is lower than the limit of 88,500 euros, whose equivalent in lei is established at the exchange rate communicated by the National Bank of Romania on the date of accession and is rounded to the next thousand, respectively 300,000 lei, can apply the VAT exemption (special exemption regime).
Extract from the Fiscal Code, Article 310 (2) to (4): “2. The turnover which serves as a reference for the application of paragraph 1 shall consist of the total amount, excluding tax in the case of taxable persons requesting the removal from the register of persons registered for VAT purposes, supplies of goods and services carried out by the taxable person during a calendar year, taxable or, as the case may be, which would be taxable if they were not carried out by a small enterprise, of operations resulting from economic activities for which the place of delivery / service the tax would be deductible, if these operations had been carried out in Romania according to article 297 (4) letter b), of the exempted operations with the right of deduction and, if they are not accessory to the main activity, of the exempted operations without the right of deduction. deduction provided for in Article 292 (2) (a), (b), (e) and (f).
Exceptions shall not include in the turnover referred to in paragraph 1, if they are ancillary to the principal activity, the supply of tangible fixed assets as defined in Article 266 (1) (3) and the supply of intangible assets, performed by the taxable person.
- A taxable person who fulfills the conditions laid down in paragraph 1 for the application of the special exemption scheme may at any time opt for the application of the normal tax regime. A taxable person who carries out in a calendar year exclusively operations exempt without the right to deduct in accordance with Article 292 shall not be deemed to exceed the limit provided for in paragraph 1.
(4) A newly established taxable person may benefit from the application of the special exemption regime, if at the moment of starting the economic activity he declares an estimated annual turnover, according to paragraph (2), under the exemption limit and does not opt for the application of the normal tax regime. in accordance with paragraph 3. “
Important: the limit is not recalculated according to the number of months of activity.
2) The limit to switch from VAT on collection to normal VAT
In short, the limit to switch from VAT on collection to normal VAT – turnover (determined according to the provisions of article 282 paragraph (3) letter a) CF): 4,500,000 lei.
Legal framework: Article 282 (3) (a) of the CF: “Except for the provisions of paragraph (1) and (2) (a), the chargeability of the tax occurs on the date of collection of all or part of the value of the supply of goods or services, in the case of taxable persons who choose to do so, called further persons who apply the VAT collection system.
The following are eligible for the application of the VAT collection system: a) taxable persons registered for VAT purposes according to article 316, who have their registered office of economic activity in Romania according to article 266 paragraph (2) letter a), whose turnover in the previous calendar year did not exceed the limit of 4,500,000 lei.
The taxable person who in the previous year did not apply the VAT collection system, but whose turnover for that year is lower than the limit of 4,500,000 lei and who opts for the application of the VAT collection system, applies the VAT collection system starting with the first day of the fiscal period following the one in which the taxable person exercised his option, provided that at the date of exercising the option he has not exceeded the limit for the current year.
The turnover for the calculation of the limit of 4,500,000 lei is constituted by the total value of the deliveries of goods and of the provision of services taxable and / or exempt from VAT, as well as of the operations resulting from economic activities for which the place of delivery / provision is considered being abroad, according to articles 275 and 278, made during the calendar year;
- b) taxable persons, who have their registered office of economic activity in Romania according to article 266 paragraph (2) letter a), who register for VAT purposes according to article 316 during the year and who opt for the application of the VAT collection system either from the registration date for VAT purposes, or later during the year of registration for VAT purposes.
The taxable person who opts for the application of the VAT collection system starting with the date of registration for VAT purposes applies the VAT collection system starting with this date. The taxable person who opts for the application of the VAT collection system later, during the year of registration for VAT purposes, applies the VAT collection system starting with the first day of the fiscal period following the one in which he exercised his option, provided that at the date of exercising the option not to have exceeded the limit provided in letter a).
The taxable person who opts for the application of the VAT collection system is obliged to apply the respective system at least until the end of the calendar year in which he opted for the application of the system, unless the turnover exceeds the limit of 4,500,000 lei during the same year. , in which case the system applies until the end of the fiscal period following the one in which the limit was exceeded.
If in the first year of application of the VAT collection system the taxable person does not exceed the limit of 4,500,000 lei, he can apply the VAT collection system until the end of the fiscal period following the one in which the limit of 4,500,000 lei, calculated for each calendar year in part, was exceeded during a calendar year.
Any taxable person who has opted for the application of the VAT collection system and who does not exceed the limit of 4,500,000 lei during a year may renounce the application of that system at any time during the year, by submitting a notification to the competent tax authority between 1 and 20 of the month, except for the first year in which he opted for the application of the system.
The deregistration of the respective person from the Register of persons applying the VAT collection system is carried out by the competent fiscal bodies starting with the first day of the fiscal period following the one in which the notification was submitted.
We mention that the rules for determining the CA that serves as a reference for the calculation of the limit are found in the Methodological Norms for the application of the Fiscal Code at point 26 paragraph (4).
Important: the limit is not recalculated according to the number of months of activity. For the application of the VAT collection system, the turnover achieved in the previous calendar year is taken into account.
The option to apply the VAT collection system can be exercised at any time during the year, provided that at the date of exercising the option it has not exceeded the limit for the current year.
A taxable person who has opted for this system and who has not exceeded the limit of 4,500,000 lei in one year may waive the application of the system at any time during the year.
3) Limit for the transition from a quarterly VAT payer to a monthly payer
The limit for the transition from quarterly VAT payer to monthly payer – is the turnover of 100,000 euros (from taxable and / or exempt operations with the right of deduction and / or non-taxable in Romania according to article 275 and 278, but which give the right of deduction according to Article 297 (4) (b) CF).
The equivalent value in lei is determined based on the exchange rate communicated by the BNR valid for December 31, 2021 respectively – published on 12/30/2021: 4,9486 lei / eur).
Thus, the limit in 2021 is: 494,860 lei. If this limit has been exceeded or if one or more intra-community acquisitions of goods have been made, it is mandatory to switch to the fiscal period – the calendar month.
We mention that, in the year of registration, the companies must estimate their turnover, and in order to establish the reporting period, they must compare it with the recalculated limit corresponding to the number of months remaining until the end of the calendar year.
If the estimated turnover does not exceed the limit of 100,000 euros, recalculated according to the number of months remaining until the end of the calendar year (100,000 euros / 12 months * no months left until the end of the year), the taxable person will submit quarterly returns in the year of registration.
Also, if the turnover actually obtained, recalculated based on the activity corresponding to an entire calendar year (CA / number of months of activity x 12) exceeds the limit of 100.00 euros, in the following year the fiscal period will be the calendar month.
Important: The limit is recalculated according to the number of months of activity .
We emphasize the fact that the method of calculating the turnover is provided in point 103 of the Methodological Norms for the application of article 322 of the Fiscal Code.
4) The transition from the norm to the real system
According to Article 69, paragraph (9), taxpayers for whom the net income is determined on the basis of income norms and who in the previous fiscal year recorded a gross annual income higher than the RON equivalent of the amount of 100,000 euros, starting with the fiscal year next, they have the obligation to determine the annual net income in the real system (the exchange rate used to determine the RON equivalent of the amount of EUR 100,000 is the average annual exchange rate communicated by the BNR, at the end of fiscal year 2021).
This category of taxpayers has the obligation to complete accordingly and to submit the single declaration regarding the income tax and the social contributions due by the natural persons until the 25th of May, including the year following the one of the income realization ”.
Important: the limit is not recalculated according to the number of months of activity.
Average annual exchange rate at EUR for 2021: 4.9204 lei / eur
The limit in lei, from the norm to the real system, is: 492,040 lei.
5) The limit for intra-community acquisitions of goods
Taxable transactions in Romania are not considered – intra-community acquisitions of goods that meet, among other things, the condition that the total value of these intra-community acquisitions does not exceed during the current calendar year or did not exceed during the previous calendar year the limit of 10,000 EUR.
We emphasize that the equivalent in lei of the limit is 34,000 lei (the conversion is made at the exchange rate communicated by BNR on the date of accession).
According to Article 268 (5) of the Fiscal Code, the limit for intra-Community acquisitions provided for in paragraph 4 (b) consists of the total value, excluding value added tax, due or paid in the Member State from which the goods are dispatched or transported, of intra-Community acquisitions of goods, other than new means of transport or goods subject to excise duty ‘.
Important: the limit is not recalculated according to the number of months of activity.
6) Intrastat value thresholds
According to INS Order no.773 / MO no.1091 of 16.12.2021, from January 2022 the intrastat value thresholds will be kept at the level of 900,000 lei for intra-EU exports of goods and respectively 900,000 lei for intra-EU imports of goods.
Thus, the following Intrastat value thresholds are approved for the collection of intra-EU trade statistical information for 2022:
– 900,000 lei for intra-EU exports of goods and respectively
– 900,000 lei for intra-EU imports of goods.
- Threshold for the application of VAT with reduced rate for housing deliveries
According to OUG no. 130 / 17.12.2021 which amends and completes Law no. 227/2015 on the Fiscal Code, the reduced rate of 5% applies to the tax base for the delivery of homes with a usable area of up to 120 sqm, excluding household annexes, whose value, including the land on which they are built, does not exceed the amount of 450,000 lei, excluding value added tax, purchased by individuals.
We specify the fact that, starting with January 1, 2022, the application of the reduced VAT rate of 5% for the delivery of homes with a maximum usable area of 120 sq m, excluding household annexes, whose value, including the land on which they are built, is extended, exceeds the amount of 450,000 lei, but does not exceed the amount of 700,000 lei, excluding value added tax, purchased by individuals individually or jointly with another individual / other individuals.
8) Limit for distance sales and electronic services
The place of supply is in Romania if during the previous calendar year the total value, excluding VAT, of TBE services and intra-community deliveries of distance goods does not exceed the limit of 10,000 euros in lei equivalent: 46,337 lei (equivalent value in lei of the amount of 10,000 euros established according to European VAT legislation by applying the exchange rate published by the European Central Bank on the date of adoption of Council Directive (EU) 2017 / 2.455 of 5 December 2017 amending Directive 2006/112 / EC and Directive 2009/132 / EC as regards regarding certain obligations regarding the value added tax for the provision of services and distance sales of goods).
Thus, the limit for distance sales was set at an amount of 10,000 euros (46,337 lei).
The limit is not applied by any taxable person, but only by those who cumulatively meet the conditions provided in Article 278 ^ 1 of the Fiscal Code:
- the supplier or provider is established or, if not established, has his permanent residence or habitual residence in a single Member State;
- services are provided (provided by electronic means, telecommunications, broadcasting and television) to non-taxable persons who are established, have their permanent residence or habitual residence in any Member State other than the Member State referred to in point (a), orgoods are dispatched or transported to a Member State other than the Member State referred to in point (a);
and
- c) the total value, excluding VAT, of the operations provided for in letter b) does not exceed, in the current calendar year, 10,000 euros or the equivalent of this amount in national currency, nor did it exceed this amount during the previous calendar year.
In the conditions in which the limit for intra-community distance sales and services provided by electronic means, telecommunications, broadcasting and television is exceeded, the basic rules from the moment of exceeding the limit are applied, respectively:
– the intra-Community distance sale takes place where the goods are located when the shipment or transport of the goods is completed
– the services provided by electronic means, telecommunications, broadcasting and television provided to non-taxable persons established in a Member State other than Romania are taxable at the place where the beneficiary of the services is established.
Important: the limit is not recalculated according to the number of months of activity.
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;
– Methodological Norms for the application of the Fiscal Code (approved by HG no. 1/2016);
– Order INS 773/2021 on Intrastat value thresholds for the collection of statistical information on intra-EU trade in goods in 2022