Practical situation:
A company purchases a car from its sole shareholder, who is also the company director. In this situation, it is important to analyse the tax and accounting implications for both the company and the individual.
- Necessary supporting documents
According to Article 6 of the Accounting Law no. 82/1991, any economic-financial operation must be recorded in a supporting document, which attests the reality of the transaction. In the case of purchases from individuals, a The purchasing border (code 14-4-13) is drawn up, based on OMFP 2634/2015, which serves to:
- Registring the goods purchased;
- justifying the amounts advanced or settled;
- entry in the accounts.
An affidavit from the individual is also required, certifying that the car comes from personal assets and was not purchased for resale. Copies of the purchase document should be attached
- VAT treatment
According to point 4 para. (4) of the Methodological Norms for the application of Art. 269 of the Tax Code, the sale of personal goods by an individual (including cars used for personal purposes) does not fall within the scope of VAT.
However, the purchasing company is obliged to declare the purchase in:
- Return 300 – on line 30;
- Declaration 394 – section D, using the vendor’s National Tax ID or identification details.
- Method of payment
According to Law no. 70/2015, cash payments between legal entities and individuals are allowed up to 10.000 lei/day/person. The amount exceeding this limit must be paid by bank transfer.
- The selling price and the affiliation relationship
As this is a transaction between affiliated persons (the shareholder has control over the company – Art. 7, point 26 of the Tax Code), it is essential that the selling price reflects the market value.
This can be justified by:
- Comparable sale announcements;
- valuation reports;
- opinions of car service centres or technical experts.
The tax authorities may adjust the transaction value, in accordance with Article 11 of the Tax Code, if it is found that the price charged does not correspond to the market price.
- Accounting entry
After the transaction has been finalised and the car has been taken into management, the company will record:
- Purchase of the car:
2133 Means of transport = 462 Sundry creditors
- Payment to the individual:
462 Sundry creditors = 5311 House in lei / 5121 Bank accounts
The car will be entered in the Fixed assets file, followed by the declaration to the Agency of Local Taxes and Fees for the determination of the car tax (according to art. 468 of the Tax Code).
- Depreciation of the car
The amount invested in the purchase is recovered through depreciation. The expense is recorded monthly:
6811 Operating expenses related to the depreciation of means of transport = 2813 Depreciation of means of transport
According to art. 28 of the Tax Code, for M1 category cars (up to 9 seats), depreciation is tax deductible up to a limit of 1,500 lei/month. Amounts exceeding this limit become non-deductible expenses.
The depreciation period is determined on the basis of the remaining period of economic use, on the basis of the Catalogue of Fixed Assets (HG 2139/2004) or an internal or external evaluation
- Obligations of the partner – natural person
If the car sold comes from personal assets, the income obtained is not taxable and does not have to be declared to the ANAF. It does not fall into the categories of taxable income provided for in Article 61 of the Tax Code.
Conclusion
The purchase of a car from the sole shareholder is a possible operation, but it must be carefully documented and assessed in order to comply with tax and accounting legislation. It requires a clear justification of the price, correct entries in the accounts and compliance with payment limits . The company must ensure that the car is used for business purposes in order to be able to deduct depreciation.