According to the amendments and additions made to the Tax Code by OG 16, according to article 291, paragraph (3^5), the Register of the acquisition of dwellings with a reduced VAT rate of 5% is organized, starting with 1 January 2023, in electronic format, on the basis of the information from the legal acts between living persons which have as object the transfer of the right of ownership for the dwellings provided for in paragraph (3) letter c) point 3, authenticated starting with 1 January 2023.
Thus, recently, by OpANAF 2053/2022 (published in the Official Gazette no.1144 of 28 November 2022), the procedure for the organisation of the Register of the purchase of dwellings with a reduced VAT rate of 5% was established, starting from 1 January 2023.
According to the provisions of the Tax Code, notaries public are obliged to:
a) to verify the fulfilment of the condition concerning the purchase of a single dwelling whose value does not exceed the amount of 600. 000 lei, excluding VAT, at the reduced VAT rate of 5%, by consulting the Register of purchases of dwellings at the reduced VAT rate of 5%, starting from 1 January 2023, before authenticating legal acts between living persons concerning the transfer of ownership or advance payment for the purchase of such a dwelling and, if it finds that this condition is not met, to authenticate them only if the supply is made at the standard VAT rate;
b) to complete the Register of the acquisition of dwellings at the reduced VAT rate of 5%, starting from 1 January 2023 on the date of authentication of legal acts between living persons concerning the transfer of ownership of the dwellings referred to in paragraph (3)(c)(3);
c) to include in legal acts between living persons concerning the transfer of ownership or the advance payment for the purchase of a dwelling referred to in paragraph 3(c)(3), particulars of compliance with the obligations referred to in point (a) and, where applicable, point (b);
d) to include in legal acts between living persons relating to the transfer of ownership or payment on account of housing referred to in paragraph 3(c)(3) the VAT rate applied, whether VAT is applied to the price or included in the price.
According to the normative act, the Register is organized 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 guidelines for access to the register by notaries public and the way to use it are drawn up 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.
Procedure for the organization of the Register of quota housing purchases
reduced VAT rate of 5%:
The Register of housing purchases with a reduced VAT rate of 5% is organised, starting from 1 January 2023.
It is organized in electronic format, according to the model provided in the annex which is an integral part of this procedure, and is managed using the computer application provided by the National Centre for Financial Information of the Ministry of Finance.
We mention that the Register is completed by notaries public on the date of authentication of legal acts between living persons which have as their object the transfer of the right of ownership for dwellings 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, for which the reduced VAT rate of 5% applies.
It is important to note that the Register is used when the transferor of the right of ownership of the dwelling is registered for VAT purposes in Romania, according to article 316 of the Tax Code, as well as when the VAT registration code of the transferor has been cancelled according to article 316 paragraph (11) letter a), c)-e) and h) of the Tax Code.
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.
Please note that the identification data of the acquirer(s) natural person(s) are the name, surname and personal number code.
In the case of non-resident natural persons, the identification data are the surname and first name, personal identification number/tax identification number, date and place of birth, type, series and number of the identity document, state issuing the identity document. If the acquirers are married, both spouses are registered in the register, except in the case where, by agreement, it has been established that the property is acquired by only one spouse as their own property, in which case only the spouse who is the acquirer is registered.
For the purposes of point (b), the identification data of the transferor(s) are the name and VAT registration code of the legal person or other unincorporated entity or the name, surname and VAT registration code of the natural person. In the case of the transmitter(s) whose VAT registration code has been cancelled according to Article 316 paragraph (11) letter a), c) – e) and h) of the Fiscal Code, the tax identification code shall be entered.
As regards point f), the identification data of the notary public are the name and surname of the notary public who authenticated the legal act entered in the register, the tax identification code and the unique registration number in the National Register of Notaries Public (RNENP), managed by the National Union of Notaries Public in Romania.
For the purposes of point g), the identification data of the notary public who carried out the registration, associate of the notary public who authenticated the act, are: name and surname, tax identification code and unique registration number in RNENP, managed by the National Union of Public Notaries in Romania.
Important! Notary publics are responsible for the correct and complete entry of information in the register.
Access to the register by notaries public is based on a qualified digital certificate, held in accordance with legal provisions.
It is worth mentioning that notaries public are registered in the computer application for the management of the register by the National Union of Notaries Public of Romania, with the following identification data: name, surname, personal numerical code, tax identification code, unique registration number in RNENP, qualified digital certificate and professional e-mail address. The registration in the computer application is done both for notaries public who authenticate legal acts and for notaries public who perform the registration in the register.
According to the procedure, the register is consulted by notaries public to verify the fulfilment of the condition related to the purchase, with a reduced VAT rate of 5%, by any natural person of a single dwelling with a useful surface of maximum 120 sqm, excluding household annexes, whose value does not exceed the amount of 600.000 lei, excluding value added tax, according to article 291 paragraph (3) letter c) point 3 of the Fiscal Code.
The fulfilment of the aforementioned condition is verified before the authentication of legal acts between living persons which have as object the transfer of the right of ownership or the payment of an advance representing the partial or integral payment of the value for the purchase of a dwelling whose value does not exceed the amount of 600.000 lei, excluding value added tax, with a reduced VAT rate of 5%.
After each entry in the register, as well as after each consultation of the register, the notary public is issued with a certificate generated by the computer application. The certificate is attached to the documentation of the authentic act concluded.
According to the recently approved procedure, in 2023, notaries shall also complete the register with information from legal acts between living persons authenticated in 2023, which concern the transfer of ownership of 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:
-Government Ordinance (OG) no.16/2022 for amending and supplementing Law no. 227/2015 on the Fiscal Code, repealing some normative acts and other financial-fiscal measures.
-ANAF Order no.2053/2022 for the approval of the Procedure for the organisation of the Register of housing purchases with a reduced VAT rate of 5%, starting from 1 January 2023.