Romanian VAT requirements are now supported by itax4apps
In itax4apps release 2.4, legal VAT requirements for Romania have been added to support the Romanian VAT declaration process.
Romania has not the best track record in terms of collecting VAT. According to a recent EU study, the VAT Gap in Romania is 37% and even though it is decreasing over the last years it remains one of the highest rates in the EU. In order to get control, form D394 (a SmartPDF form requiring a lot of data) has to be filed for any taxable operation in Romania for which an invoice is issued. On top of that, extensive purchase & sales ledgers need to be provided.
To summarise, there were five areas where we needed to pay special attention.
- Cash based accounting (applicable organisations only pay VAT on sales after invoices are paid by the recipients of goods or services they have supplied)
- Corrections (declaration and adjustments are combined in one declaration)
- Non-recoverable tax (gross amounts and non-recoverable tax amounts need to be submitted in separate VAT boxes, instead of reporting a Net Recoverable Tax like most countries do)
- Purchase and sales ledgers (including detailed transaction information)
- Form D394 (used by the tax authorities for risk analysis). This form requires data comparable with data used in SAF-T structures from Spain or Poland.