According to a draft law recently submitted to the Senate for debate and adoption, NGOs that help build, modernise and equip public sports facilities will benefit from a VAT exemption for the provision of services and goods.
For the document to apply, it must be adopted by Parliament and promulgated by the head of state. The VAT exemption will apply 90 days after the draft appears in the Official Gazette.
According to the initiators of the project, “Investments in sport are not exclusively the prerogative of the Romanian state, but can also be made by civil society and the private sector. Private initiatives for the development of sports infrastructure exist, but they are rather isolated cases. Thus, in order to achieve the proposed goal, the draft law proposes the establishment of a tax benefit for non-governmental organizations that through their activity develop elements of sports infrastructure.
Specifically, the draft law proposes that those non-governmental organizations that are concerned with the development of sports infrastructure will benefit from a VAT exemption for construction, rehabilitation and modernization services of sports facilities, as well as for the supply of sports equipment, apparatus, devices, articles, accessories, materials and supplies for sports use to sports facilities (…)
The proposed amendments will stimulate the interest of civil society to contribute to the development of sports infrastructure in local communities. The direct result is the emergence of new sports facilities throughout the country, through initiatives similar to those undertaken by civil society for the construction of hospitals. The proposed changes also offer the same benefits for the modernisation of existing sports facilities”.
More specifically, the bill would introduce a VAT exemption for the following operations into the tax code:
– services of construction, rehabilitation, modernization of sports facilities in the public state network, as well as services of construction, rehabilitation, modernization of sports facilities provided to non-profit entities registered in the public register organized by the Tax Office, if they are intended for sports facilities owned and operated by the non-profit entity or those in the public state network, as the case may be;
– supplies of sports equipment, apparatus, devices, articles, accessories, materials and consumables for sports use, as well as the adaptation, repair, rental and leasing of such goods, made to sports facilities in the public state network, as well as those made to non-profit entities registered in the public register organised by ANAF, if they are intended for sports facilities owned and operated by the non-profit entity or those in the public state network, as the case may be.
More specifically, the law would introduce a VAT exemption for the following transactions in the Tax Code:
– services of construction, rehabilitation, modernization of sports facilities in the public state network, as well as services of construction, rehabilitation, modernization of sports facilities provided to non-profit entities registered in the public register organized by the Tax Office, if they are intended for sports facilities owned and operated by the non-profit entity or those in the public state network, as the case may be;
– supplies of sports equipment, apparatus, devices, articles, accessories, materials and consumables for sports use, as well as the adaptation, repair, rental and leasing of such goods, made to sports facilities in the public state network, as well as those made to non-profit entities registered in the public register organised by ANAF, if they are intended for sports facilities owned and operated by the non-profit entity or those in the public state network, as the case may be.
More specifically, the proposed VAT exemption would apply as follows:
– either directly, through invoicing without VAT by the suppliers of goods/service providers, if the beneficiary of the supply/service is the sports base in the public state network or, as the case may be, the central or local public institution/authority that provides its financing;
– or by refunding the tax relating to the purchase of goods/services by ONGs (Non-governmental organization), according to a procedure established by order of the Ministry of Finance.