News

Legislative changes of some normative acts regarding the regime of foreigners in Romania, in force starting with 09.11.2018

Law no. 247/2018 amends and supplements GEO no. 194/2002 on the regime of foreigners in Romania as well as Government Ordinance no. 25/2014 regarding the employment and secondment of foreigners on the Romanian territory, according to the below: Main legislative changes of Ordinance no. 194/2002 Employers will have the obligation to notify the Immigration Office […]

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E.U. COURT OF JUSTICE / Right to deduction in case of cancelled acquisition of shares

By the planned acquisition of shares in the target company, potential acquirer’s intention was to provide the target company with management services and, on that basis, to carry out an economic activity. Such an activity gives rise to VAT deduction on expenditure relating to consultancy services and other services in connection with the planned acquisition […]

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Updates regarding secondment of workers in the framework of the provision of services

In the Official Journal of the European Union from 01.07.2018 has been published the European Directive no. 2018/957 amending the EU Directive no. 96/71/EC concerning the posting of workers in the framework of the provision of services. This Directive entered into force on 29.07.2018, following to be implemented by the Member States by latest 30.07.2020. […]

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The reverse charge will be extended until June 30, 2022

The period of application of the reverse charge mechanism in relation to operations involving goods and services at risk of fraud was extended until 30 June 2022. The Council of the European Union adopted this measure to combat fraud in the field. Among the products subject to reverse charge in Romania are cereals, mobile phones […]

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Romanian Parliament Approves Tax Law for Natural Gas Sector

Romania’s Chamber of Deputies (lower house of Parliament) on July 9 approved the amended draft of a law on the taxation of offshore oil and gas production. The legislation was initially amended and approved by the Senate on February 12. It still requires the president’s signature before its measures will enter into force. Under the […]

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CJEU to Consider Romanian VAT Exemption for Drilling Rigs

Summary The Court of Justice of the European Union has published the reference for a Romanian case (C-291/18) on whether article 148(c) of EU VAT Directive (2006/112/EC) should be interpreted to mean that the sale of offshore jackup drilling rigs may be eligible for a VAT exemption. Request for a preliminary ruling from the Court […]

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VAT Directive Precludes Romanian Transport Services VAT Deduction Rules

Citations: Cartrans Spedition Srl v. Romania; C-495/17 Summary Advocate General Eleanor Sharpston in Cartrans Spedition Srl v. Romania, C-495/17, called on the Court of Justice of the European Union to find that articles 146(1)(e) and 131 of the EU VAT Directive (2006/112/EC) preclude Romania from requiring the production of specific documents affirming the road transport […]

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Update to the GD no. 946/2017 on establishing the quota types of 2018 newly admitted employees to the labour market

Government Decision no. 946/2017 published in the Official Gazette on 29th of December 2017, established a total number of 7000 employment permits which could be issued in 2018 to Non-European citizens, of which 4000 were for permanent workers and 1200 for seconded workers. Since on the 9th of July 2018, the quota for seconded foreign […]

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Legislative changes regarding the conditions of issuing the employment approvals for foreign citizens

According to Government Emergency Ordinance no. 75/2018, art. 4 paragraph 2 from Ordinance no. 25/2014 regarding the employment and secondment of foreign citizens on the Romanian territory, will be modified as follows: The eligibility condition regarding the employment of foreign citizens on the Romanian territory is considered that the Romanian employer has not been sanctioned […]

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Taxpayers will be able to argue more effectively against transfer pricing readjustments following a key ruling on the arm’s-length principle in the Hornbach-Baumarkt case

The ECJ ruled that member state tax rules are proportionate (and therefore in line with EU law), saying taxpayers in the EU have the right to demonstrate that they may have had commercial reasons for failing to meet the standard required of the arm’s-length principle. Facts of the case This time, the ECJ ruled on […]

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Development Assistance Committee and Romania

As of April 5th, 2018 Romania, becomes a Participant in the Development Assistance Committee. As a provider of substantial concessional finance for development co-operation and humanitarian aid, Romania will contribute to the DAC’s discussions and work on key development and humanitarian issues. Integrating Romania’s experience and perspectives will help strengthen the DAC’s capacity to inform […]

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Mandate Contract vs. Individual Work Agreement

The mandate agreement and the individual labor contract (“ILC”) are regulated differently from a legal perspective, so ILC is regulated by the Labor Code, while the mandate contract is regulated by Law 31/1990 regarding commercial companies. In general, both contracts involve a benefit to a beneficiary as a rule within the work program. Both the […]

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Correcting errors in VAT returns

According to Order no. 3604/2015 for the approval of guidelines for the correction of material errors in Value Added Tax returns, VAT returns submitted by taxable persons registered for VAT purposes can be corrected for material errors by the competent fiscal authority: at its initiative; at the request of the taxable person; The fiscal authority […]

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The Unique Tax Declaration can be submitted online starting May 17th

Starting Thursday, May 17th, any natural person who realizes income from economic activities or other categories of income, has the possibility to declare them online via the Master pdf form available on the Virtual Private Space, N.A.F.A. advises. “The form automatically realize the computation on the amount of taxes and contributions due by individuals to […]

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VAT Deduction after Tax Authorities’ Assessment (12/04/2018 C-8/17 & 26/04/2018 C-81/17)

Where, following a tax adjustment, additional VAT was paid to the Treasury and was the subject of documents rectifying the initial invoices several years after the supply, Member States may not deny the right to deduct VAT on the ground that the regulatory period laid down for the exercise of that right has expired. (C-8/17) […]

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E-Commerce and VAT in Romania

Whether one sells through platforms such as Amazon, E-bay or your own website, when selling goods into the European Union one must be compliant with the VAT regulations of the member state of sale. Even if your business is not registered in Europe. The European Union estimates that around a whopping 50 billion euros in […]

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B.E.P.S. implementation: Multilateral B.E.P.S. Convention will enter into force on July 1st

Base Erosion and Profit Shifting (B.E.P.S.) refers to tax planning strategies, that exploit gaps and actual mismatches in tax rules that allow the artificial shift of profits to loss or non-tax locations where there is little or no economic activity, which takes to little or no overall corporate tax being paid. In the attempt to […]

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How G.D.P.R. will affect labor relationships

As we all know, starting with May 25th, 2018, General Data Protection Regulation (G.D.P.R.) will come into force and will impose stricter rules on how companies can store and use personal information of their employees. In the following lines we will detail the obligations of the companies, namely of human resources departments to comply with […]

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Place of work – Provisions to be included in the Employment Agreement

Specifying the place of work in the individual labor contract Specifying the place of work involves the precise determination in space of the location where the work will be performed. The place of work, an element of the individual labor contract, shall not be confused with the meaning of the word “job”, as defined in […]

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