Situation:
A company ABC SRL, non-VAT payer in Romania but with an intra-community VAT code, receives an accommodation invoice (in Romania) from a platform that deals with accommodation intermediation. The invoice received has a VIES code from Ireland. The company also receives an invoice for Ro-Ro airline tickets purchased from a Hungarian airline.
What is the tax and declarative treatment of these invoices?
Solution:
Fiscal treatment of the accommodation invoice:
According to Article 278 (4) (a) of the Fiscal Code:
“Except as provided in paragraphs 2 and 3, for the following services, the place of supply shall be deemed to be:
- a) the place where the real estate is located, for the provision of services performed in connection with the real estate, including the services provided by experts and real estate agents, accommodation in the hotel sector or in sectors with similar function, such as holiday camps or campsites , granting rights to use real estate, for services for the preparation and coordination of construction works, such as services provided by architects and companies that provide supervision on site.
According to point 16 paragraph (2) letter i) of the Methodological Norms given in application of Article 278 paragraph (4) letter a) of the Fiscal Code:
,, The services related to real estate provided for in Article 278 paragraph (4) letter a) of the Fiscal Code include only those services that have a sufficiently direct link with the real estate in question.
The services are considered to have a sufficiently direct connection with the real estate in the following cases:
- i) the provision of accommodation services in the hotel sector or in sectors with a similar function, such as holiday camps or places arranged for camping, including the right to stay in a specific place resulting from the conversion of rights of use for a limited time; similar situations.
Therefore, the place of provision of services in the case of accommodation services is the place where the real estate (hotel) is located, ie in Romania, the person obliged to pay the tax being ABC SRL, according to article 307 paragraph (6) of the Fiscal Code.
(6) In other situations than those provided in paragraph (2) – (5), if the supply of goods / provision of services is made by a taxable person who is not established in Romania or is not considered be established for the respective deliveries of goods / services on the Romanian territory according to the provisions of article 266 paragraph (2) and which is not registered in Romania according to article 316, the person obliged to pay the tax is taxable person or non-taxable legal person, established in Romania, whether or not it is registered for VAT purposes in accordance with Article 316, or the person not established in Romania, but registered in Romania according to Article 316, who is the beneficiary of some supplies of goods/services taking place in Romania, according to Article 275 or 278.
By exception, the taxable person or the non-taxable legal person, established in Romania and not registered for VAT purposes according to article 316 or 317, who is the beneficiary of some services provided in article 278 paragraph (4) and (5) or of some sales of distance goods provided for in Article 275 (2) to (4), shall not be liable for payment of the fee if the supplier / provider applies one of the special arrangements provided for in Article 314, 315 or 3152.
Thus, the Romanian company will pay VAT through D301 (intra-community VAT code) and will not submit D390 as it is not an intra-community acquisition of services according to article 278 paragraph (2) Fiscal Code
Tax treatment airline ticket invoice:
According to Article 278 paragraph (4) letter b) of the Fiscal Code, “with the exception of the provisions of paragraphs 2 and 3, for the following services, the place of supply is considered to be:
- b) the place where the transport is carried out, depending on the distances covered, in the case of passenger transport services;
,,According to point 17 of the Methodological Norms given in application of article 278 paragraph (4) letter b) of the Fiscal Code: (17) (1)
According to article 278 paragraph (4) letter b) of the Fiscal Code, the place of provision for the services consisting in passenger transport is the place where the transport is carried out, depending on the distances covered.
(2) The national passenger transports are transports that have the place of performance in Romania, having the point of departure and the point of arrival on the Romanian territory.
Therefore, taking into account the above provisions, the place of provision of transport services is in Romania (the place where the transport is performed), the person obliged to pay the tax being ABC SRL, according to article 307 paragraph (6) of the Fiscal Code.
Thus, the company will pay VAT through D301 (intra-community VAT code) and will not submit D390 because this acquisition is not an intra-community acquisition of services, according to article 278 paragraph (2) of the Fiscal Code.
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).