The authorities recently introduced a series of tax and legal amendments/clarifications, as follows:
Profit tax
- Application of the early education incentives has been suspended from 1 April 2021 until 1 January 2022. The postponement is also correlated at the level of salary related taxes.
- During this period, expenses relating to the proper functioning of taxpayer-funded crèches and kindergartens are deductible within the limits applicable to social expenses.
Specific Tax (the HoReCa sector)
- The exemption from the payment of the specific tax by taxpayers operating in the HoReCa sector has been prolonged for an additional period of 90 days starting with 1 April 2021.
Value added tax
- Intra-community transactions carried out with taxable persons resident in the United Kingdom of Great Britain and Northern Ireland will not be included in the intra-community lists of transactions, with the exception of intra-community transactions involving the transport of goods to and from Northern Ireland.
- The date until which taxpayers may benefit from a reimbursement of value added tax with a subsequent tax audit has been extended from 31 March 2021 to 31 January 2022.
Other tax incentives
- The deadline for submitting a request for the restructuring of tax liabilities under GEO no. 6/2019 has been extended from 30 June 2021 to 31 January 2022 (the related notification must be submitted by 30 September 2021).
- The deadline for submitting a request for the cancellation of ancillary liabilities has been extended from 31 March 2021 to 31 January 2022.
- The deadline for submitting a request for payment in instalments has been prolonged from 31 March 2021 to 30 September 2021.
- Additional tax liabilities relating to principal budgetary debts outstanding as at 31 March 2020 and incurred as a result of tax audits ongoing as at 29 March 2021, or as a result of tax audits that started after 29 March 2021 but no later than 31 January 2022, are eligible for cancellation under certain conditions.
Source: Emergency Ordinance no. 19/2021 regarding various tax measures, as well as the amendment and supplementation of certain fiscal normative acts, as published on 29 March 2021.
Electronic cash registers
- The procedure for connecting electronic fiscal cash registers has been published
- The connection of cash registers will take place as follows:
- Until 30 June 2021, for large taxpayers
- Until 30 November 2021, for small and medium taxpayers
- On the date of installation of electronic cash registers, for purchases that take place after 1 December 2021
Source: Order no. 435/2021 of the President of the National Agency for Fiscal Administration approving the procedure for connecting fiscal electronic cash registers to the national computer system for the supervision and monitoring of the fiscal data of the National Agency for Fiscal Administration, as published on 30 March 2021
EU legislative updates
The Council of the European Union has adopted new rules on tax transparency applicable for digital platforms (DAC7) with respect to the economic activities performed by sellers (individuals or legal entities) through those platforms, such as the sale of goods, the renting of real estate, etc.
The new provisions will have to be implemented through domestic legislation by 31 December 2022 and will be applicable as of 1 January 2023.
Source: European Council press release published on 22 March 2021
