News

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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Bundled Supply & VAT Rate (C-463/16, 18/01/2018)

A single supply consisted of two distinct elements which would be subject to different rates must be taxed solely at the rate applicable to that single supply, even if the price of each element forming the full price can be identified. The Court emphasizes the consequence of a bundled or single supply on the VAT […]

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EU Removes Jurisdictions From Tax Blacklist

The EU has announced the removal of eight jurisdictions from its tax blacklist. On January 23rd, the European Council agreed to delist Barbados, Grenada, South Korea, Macao, Mongolia, Panama, Tunisia, and the United Arab Emirates. These jurisdictions are being moved to a separate category of jurisdictions, and will be subject to close monitoring. The Council […]

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New VAT reform within the EU in an attempt to tackle cross border fraud

The EU Commission is preparing for the biggest reform of EU VAT rules in a quarter of a century, in an attempt to crack down on an estimated EUR 50 billion in tax revenue lost to cross-border VAT fraud between countries within the European Union (EU). Over 150 billion of VAT is lost every year, […]

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More flexibility on VAT rates, less red tape for small businesses

The European Commission has today proposed new rules to give Member States more flexibility to set Value Added Tax (VAT) rates and to create a better tax environment to help SMEs flourish. Today’s proposals are the final steps of the Commission’s overhaul of VAT rules, with the creation of a single EU VAT area to […]

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Gross average salary per economy in 2018

Starting with 06th of January, 2018 the gross average salary per economy has been increased from RON 3131 to RON 4162. Therefore, all references related to the gross average salary in 2018 must consider the amount of RON 4162. According to the Immigration legal requirements, non–EU foreigners having individual employment contract should obtain a gross […]

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2018 quote for newly admitted employees is published

Published in the Official Gazette of Romania, Part I, No. 1040 of 29.12.2017. The Government Decision no. 946/2017 sets out a total number of 7.000 employment endorsements that might be issued in 2018 to foreign citizens belonging to other states than the European Union Member States or the European Economic Area or the Swiss Confederation, […]

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Commission objects to the request made by Romania to apply zero rate on certain supplies

By letter registered with the Commission on 26 April 2017, Romania requested based on Article 395 of the VAT Directive an authorisation to apply 0% VAT rate of VAT to a number of supplies of goods and services. Pursuant to Article 395 of the VAT Directive, the Council, acting unanimously on a proposal from the […]

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Portable A1 form in case of exemption – Transnational secondment exceeding 24 months

Article 12 of (EC) Regulation No. 883/2004 provides that the period of secondment cannot be longer than 24 months, therefore the seconded employee may remain affiliated to the social security system from the country of origin for up to maximum 24 months. As an exemption, Article 16 of (EC) Regulation No. 883/2004 allows the competent […]

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Split VAT payment mechanism makes Romania an EU pioneer

Romania could become the only EU member state to enforce the VAT split payment, and this will have a major impact on Romanian companies. After the new system is implemented, once a service is performed, the suppliers will provide the client with a VAT account. As a result of public consultations on the initial proposal […]

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