The Ordinance of the National Revenue Office no. 1964/24.07.2015

  • The Ordinance of the National Revenue Office no. 1964/24.07.2015 modifies the criteria based on which companies incorporated under the Company Law no. 31/1990 register for VAT.
  • These modifications have as subject matter the Ordinance of the National Revenue Office no. 17/2015, the basic regulation regarding the conditions for VAT registration.


  • Outside this regulatory basis, the following three types of companies are included:
    • Companies that upon set-up estimate that they are going to obtain a turnover that is higher than RON 220,000 or companies that upon incorporation declare that they want to be VAT payers, even though they do not reach the exemption margin (art. 153, par. (1), point „a” of the Fiscal Code);
    • Companies that have started to run their business but during their business year express their wish to be registered for VAT, even though they have not reached the upper limit after which VAT becomes applicable in a mandatory manner;
    • Companies for which the VAT number has been invalidated ex officio by the tax authority and intend to register for VAT.
  • According to this ordinance, forms no. 098 “Application for VAT registration” and 088 “Affidavit” shall take place only when the company has not reached the margin of RON 220,000 and it cannot justify its business or when its VAT number has been invalidated out of reasons that are known (failure to file statements for a term of 6 months, there are no transactions as reported in expense deduction sheets, for a term of 6 months etc.).
  • According to art. 3 of the Ordinance no. 17/2015, a company exceeding the VAT margin shall be registered for VAT only by filing the form 010 „Amended statement”.
  • The company does not have to file the form 088, although tax authorities require this pursuant to a normative deed that allows for arguable interpretations of laws.
  • It is not seldom that companies exceeding the maximum limit of RON 220,000 applies for the registration for VAT and tax authorities require from them to file the form 088. As a result following an analysis, authorities find that the company does not have the business capacity necessary for paying VAT, which is obviously absurd, because the company has just exceeded the turnover limit.
  • On the same day, the company receives the VAT number, it becomes VAT payer but, within a few days, such code is invalidated based on the statement 088 and the company has already become taxable and registered for VAT, but it has a VAT number that is not valid.
  • The consequences are the following:
    • The company shall collect VAT upon deliveries of services and it shall pay tax based on the special VAT return form no. 301;
    • The company shall not deduct VAT from the acquisitions it makes. The beneficiaries of this company are also not allowed to deduct VAT.
  • Present modifications do not refer to substance, i.e.:
    • a) if the legal representative of the company fails to supply the required data correctly and completely, then the tax authority rejects the application;
    • b) if data are not complete, a set of documents shall be sent to the Office of Fight against Fraud, together with the application of the company, so that an inspection could take place on-site.
  • On this occasion, terms during which documentation is approved or rejected have also been changed from 1 to 30 working days, depending on the fulfilment of criteria and the multitude of circumstances that actually appear.


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