The tax treatment of an intra-Community software acquisition depends essentially on the legal nature of the transaction: transfer of usage rights (licence) or a simple supply of goods/electronic services. This qualification determines both the VAT regime and any withholding tax obligations.
Thank you for reading this post, don't forget to subscribe!From the perspective of non-resident income tax, if the rights transferred over the software are limited to usage and do not involve the delivery of physical goods, the operation may be classified as a royalty under [Fiscal Code art. 7 point 36] and its methodological norms. In this case, the Romanian company has the obligation to withhold non-resident income tax at source (standard rate 16%), declared via form D100 and reported in the informative form D207. The application of a reduced rate (e.g. 3%) is possible only based on a tax residency certificate and the Romania–Netherlands double taxation treaty.
From a VAT perspective, company XY SRL, although not a VAT payer, holds a special VAT code for intra-Community acquisitions. Exceeding the EUR 10,000 threshold turns the transaction into a taxable intra-Community acquisition in Romania according to [Fiscal Code art. 268 para. (4)]. Thus, VAT is due in Romania at the standard rate (21%) through the reverse charge mechanism applied by the Romanian beneficiary.
Reporting obligations include:
• Form 301 (Special VAT Return): declaration of the taxable base and VAT due, with payment by the 25th of the following month;
• Form 390 VIES: reporting of the intra-Community acquisition (code A), in the same period.
If the supply is performed electronically (download/online licence), the transaction qualifies as an electronic service, with the place of supply in Romania according to [Fiscal Code art. 278 para. (2)], maintaining the obligation to self-assess VAT via forms 301 and 390, without withholding tax obligations for the non-resident.