TITLE VI - Value-added tax

CHAPTER I - Definitions

ART. 125 - Definition of value-added tax

    The value-added tax is an indirect tax which is owed to the state budget and which is collected according to the provisions of this title.

ART. 125^1 - Meaning of certain terms and phrases

    (1) For the purposes of this title, the terms and phrases below shall have the following meanings:

    1. acquisition means the goods and services obtained or to be obtained by a taxable person, through the following operations: supply of goods and/or provisions of services, carried out or to be carried out by another person to this taxable person, intra-Community acquisition and import of goods;

    2. intra-Community acquisition shall have the meaning provided in Article 130^1;

    3. tangible fixed assets means any asset owned for the purpose of being used in the production or supply of goods or in the provision of services, in order to be leased to third parties or for administrative purposes, if such asset has a normal use period longer than one year and a value higher than the limit provided by Government decision or by this title;

    4. economic activity has the meaning provided in Article 127 (2). When a person pursues several economic activities, economic activity means any all economic activities pursued by it;

    5. tax assessment means the equivalent value of a taxable supply of goods or provision of service, of a taxable import or of a taxable intra-Community acquisition, established according to Chapter VII;

    6. assets means tangible movable or immovable assets, by their nature or by destination. The energy, heat, natural gas, refrigerating agent and others similar shall be regarded as movable tangible assets;

    7. excisable products means energetic products, alcohol and alcoholic beverages and processed tobacco, as defined in Title VII of this law, except for gas distributed through the distribution system of natural gas and electricity;

    8. registration code for VAT purposes means the code provided in Article 154 (1) assigned by the competent authorities from Romania to the persons that have the obligation to register according to Article 153 or 153^1, or a similar registration code, assigned by the competent authorities from another Member State;

    9. date of accession means the date when Romania accedes to the European Union;

    10. tax return means the statement drawn up and submitted according to Article 156^2;

    11. Directive 112 means Directive 2006/112/EC of the European Union Council of 28 November 2006 on the common system of value added tax, published in the Official Journal of the European Communities (OJEC) L 347 of 11 December 2006, as subsequently amended and supplemented. The references that appear on the invoices sent by the suppliers/providers from other Member States made to some articles in the 6th Directive, that is the Council Directive 77/388/EC of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover taxes - Common system of value-added tax: uniform basis of assessment, published in the Official Journal of the European Communities (JOCE) L 145 of 3 June 1977, shall be construed as references to the corresponding articles of Directive 112, according to the correspondence table presented in Annex XII to this directive.

    12. invoice means the document provided in Article 155;

    13. importer means the person on whose name the assets are declared, at the time when the import duty becomes payable, according to Article 136, and which shall be bound to pay the tax according to Article 151^1 in case of taxable imports;

    14. small enterprise means a taxable person that applies the special exemption arrangements provided in Article 152 or, as the case may be, an equivalent arrangement, in compliance with the legal provisions of the Member State where the person is established, according to Article 281 - 292 of Directive 112;

    15. intra-Community supply has the meaning provided in Article 128 (9);

    16. self-supply shall have the meaning provided in Article 128 (4);

    17. fiscal period means the period provided in Article 156^1;

    18. taxable person has the meaning in Article 127 (1) and represents the natural person, the group of persons, public institution, legal person, as well as any entity capable to pursue an economic activity;

    19. non-taxable legal person means the person, other than the natural person that is not a taxable person, within the meaning of Article 127 (1);

    20. non-taxable person means the person that does not meet the conditions in Article 127 (1) in order to be considered taxable person;

    21. person means a taxable person or a non-taxable legal person or a non-taxable person;

    22. intra-Community acquisitions threshold means the threshold established according to Article 126 (4) b);

    23. distance sale threshold means the threshold established according to Article 132 (2) a);

    24. self-provision shall have the meaning provided in Article 129 (4);

    25. suspensive customs procedure means, for the purposes of value-added tax, the customs procedures and destinations provided in Article 144 (1) a) point 1 - 7;

    26. electronically-supplied services means the supply and creation of web sites, distance upkeep of programmes and equipment, supply of software and their update, supply of images, texts and information and making available the database, supply of music, movies and games, including gambling, broadcasting political, cultural, artistic, sports, scientific, entertainment shows and event and supply of distance educational service. When the supplier of services and its client communicate by electronic courier, this does not mean in itself that the service supplied is an electronic service;

    27. tax means value-added tax, applicable according to this title;

    28. collected tax means the tax related to the taxable supply of goods and/or provision of services, carried out by the taxable person, as well as the tax related to the operations for which the beneficial owner is bound to pay tax, according to Articles 150 - 151^1;

    29. deductible tax means the total amount of the tax payable or paid by a taxable person for the acquisitions made;

    30. tax to be deducted means the tax related to acquisitions, which may be deducted according to Article 145 (2) - (4);

    31. deducted tax means the deductible tax, which has been actually deducted;

    32. distance sale means a supply of goods consigned or transported from a Member State to another Member State by the supplier or by another person on behalf of such person by a buyer which is a taxable person or a non-taxable legal person, which benefits by the derogation provided in Article 126 (4), or by other non-taxable person, under the terms provided in Article 132 (2) - (7).

    (2) For the purpose of this title:

    a) a taxable person which has the headquarters of the economic activity in Romania is regarded as being established in Romania;

    b) a taxable person which has the headquarters of the economic activity outside Romania is regarded as being established in Romania if it has a fixed headquarters in Romania, or, respectively, if he has in Romania sufficient technical and human resources to carry out on a regular basis taxable supplies of goods and/or provisions of services;

    c) a taxable person which has the headquarters of the economic activity outside Romania and which has a fixed headquarters in Romania according to letter b) shall be regarded as taxable person not established in Romania for the supplies of goods and/or provisions of services to which the fixed establishment on the Romanian territory does not participate.

    (3) New means of transport referred to in Article 126 (3) b) and 143 (2) b) shall be those defined according to letter a) and that meet the conditions under letter b), that is to say:

    a) means of transport shall be vessels exceeding 7,5 metres in length, aircraft the take-off weight of which exceeds 1.550 kilograms or motorized land vehicles the capacity of which exceeds 48 cubic centimetres or the power of which exceeds 7,2 kilowatts, intended for the transport of persons or goods, except for:

    1. the vessels used for sailing in the sea waters, used for the international transport of persons and/or goods, for fishing activities or any other economic activity or for offshore salvage operations or assistance on the sea; and

    2. aircraft used by the paid airlines, in principal, for international transport of persons and/or goods for a consideration;

    b) the conditions to be fulfilled are the following:

    1. for the land vehicles, it must not be supplied more than 6 months after the date of first entry into service or must not have travelled more than 6 000 kilometres;

    2. in the case of vessels, it must not be supplied more than 3 months after the date of first entry into service or must not have sailed for more than 100 hours;

    3. in the case of aircraft, it must not be supplied more than 3 months after the date of first entry into service or must not have flown for more than 40 hours.

ART. 125^2 - Territorial application

    (1) For the purposes of this title:

    a) Community and territory of the Community shall mean the territory of the Member States, as defined in this article;

    b) Member State and territory of a Member State shall mean the territory of each Member State of the Community where the Treaty establishing the European Community applies, in accordance with Article 299 therein, except for the territories provided in paragraphs (2) and (3);

    c) third territory shall mean any territory provided in paragraphs (2) and (3);

    d) third country shall mean any state or territory where the provisions of the Treaty establishing the European Community do not apply.

    (2) The following territories that are no longer a part of the Community customs territory shall be excluded from the Community territory as regards the tax:

    a) Federal Republic of Germany:

    1. the Island of Heligoland;

    2. the territory of Busingen;

    b) Kingdom of Spain:

    1. Ceuta;

    2. Melilla;

    c) Republic of Italy:

    1. Livigno;

    2. Campione d'Italia;

    3. the Italian waters of Lake Lugano.

    (3) The following territories that are a part of the Community customs territory shall be excluded from the Community territory as regards the tax:

    a) the Canary Islands;

    b) French Republic: the overseas departments;

    c) Athos Mountain;

    d) Aland Islands;

    e) Channel Islands.

    (4) The following territories mentioned below shall be considered as included in the territories of the following Member States:

    a) French Republic: the Principality of Monaco;

    b) United Kingdom of Great Britain and Northern Ireland: the Isle of Man;

    c) Cypriot Republic: Akotiri and Dhekelia Sovereign Base Areas of the United Kingdom of Great Britain and Northern Ireland.

CHAPTER II - Taxable operations

ART. 126 - Taxable operations

    (1) For the purpose of the tax, taxable operations in Romania shall be those which cumulatively satisfy the following conditions:

    a) the operations that, within the meaning of Article 128 - 130, represent or are assimilated with a supply of goods or a provision of services, within the scope of the tax, made for a consideration;

    b) the place of supply of goods or the provision of services is considered to be in Romania, in compliance with the provisions of Article 132 and 133;

    c) the supply of goods or the provision of services is made by a taxable person, as defined in Article 127 (1), acting as such;

    d) the supply of goods or the provision of services results from one of the economic activities provided in Article 127 (2).

    (2) The import of goods carried out in Romania by any person shall also be considered taxable operation if the place of import is in Romania, according to Article 132^2.

    (3) The following paid operations, for which the place is considered to be in Romania, according to Article 132^1, shall also be taxable operations:

    a) an intra-Community acquisition of goods, others than new means of transport or excisable products, carried out by a taxable person acting as such or by a non-taxable legal person, that does not enjoy by the derogation provided in paragraph (4), that comes after an intra-Community supply outside Romania by a taxable person acting as such and that is not regarded as small enterprise in its Member State, and to which the provisions of Article 132 (1) b) regarding the supply of goods subject to an installation or assembly or of Article 132 (2) with regard to the distance sale do not apply;

    b) an intra-Community acquisition of new means of transports, carried out by any person;

    c) an intra-Community acquisition of excisable products, carried out by a taxable person, acting as such or by a non-taxable legal person.

    (4) By derogation from the provisions of paragraph (3) a) the intra-Community acquisitions that meet all the following conditions shall not be considered taxable operations in Romania:

    a) they are carried out by a taxable person that carries out only supplies of goods and provisions of service for which the tax is not deductible or by a non-taxable legal person;

    b) the total value of these intra-Community acquisitions does not exceed throughout the current calendar year or it did not exceed throughout the previous calendar year the EUR 10 000 threshold for which the ROL equivalent shall be established by the norms.

    (5) The threshold for intra-Community acquisitions provided in paragraph (4) b) shall be made up of the total value, value-added tax exclusive, payable or paid in the Member State from which the goods are consigned or transported, of the intra-Community acquisitions of goods, other than the new means of transport or goods subject to excise duties.

    (6) The taxable persons and the non-taxable legal persons, eligible for the derogation for the derogation provided in paragraph (4), shall be entitled to opt for the general arrangement provided in paragraph (3) a). The option shall apply at least for two calendar years.

    (7) The rules applicable in case of exceeding the threshold for intra-Community acquisitions, provided in (4) b) or of exercising the option established by norms.

    (8) There shall not be considered taxable operations in Romania:

    a) intra-Community acquisitions of goods, the supply of which in Romania would by exempt according to Article 143 (1) h) - m);

    b) intra-Community acquisitions of goods, carried out within a triangular operation, for which the place is in Romania in compliance with the provisions of Article 132^ (1), when the following conditions are met:

    1. the acquisition of goods is carried out by a taxable person, called re-selling buyer, that is registered for VAT purposes in another Member State, but not established in Romania;

    2. the acquisition of goods must be carried out for the purpose of a subsequent supply of such goods, in Romania, by the reselling buyer provided in point 1;

    3. the goods acquired by the reselling buyer provided in point 1 shall be dispatched or transported by the person to which the subsequent supply is going to be performed, called beneficiary of the subsequent supply, directly in Romania, from a Member State other than the state where the reselling buyer is registered for VAT purposes;

    4. the beneficiary of the subsequent supply must be a taxable person or a non-taxable legal person, registered for VAT purposes in Romania;

    5. the beneficiary of the subsequent supply was appointed in compliance with Article 150 (4) as person bound to pay the tax for the supply performed by the reselling buyer provided in point 1.

    c) intra-Community acquisitions of second-hand goods, works of art, collectors' items or antiques, within the meaning of Article 152^2, when the seller is a reselling taxable person, acting in this capacity, and the goods have been taxed in the Member State that supplies them, according to the special arrangements for agents, which are taxable persons, within the meaning of Article 313 and 326 of Directive 112 or the seller is the organiser of sales by public auction, acting in this capacity, and the goods were taxed in the supplying Member State, according to the special arrangement, within the meaning of Article 333 of the Directive 112;

    d) intra-Community acquisitions of goods that follow a supply of goods under a suspensive customs procedure or under a internal transit procedure, if within the Romanian territory these procedures or this proceedings are concluded for such goods.

    (9) The following may be taxable operations:

    a) taxable operations, for which the taxation quotas provided in Article 140 shall apply;

    b) exempt operations with right of deduction, for which value-added tax is not payable, but a deduction of the value-added tax payable or paid for acquisitions is allowed. In the present title, such operations are provided in Article 143 and Article 144^1;

    c) exempt operations without right of deduction, for which value-added tax is not payable and a deduction of the value-added tax payable or paid for acquisition is not allowed. In the present title, such operations are provided in Article 141;

    d) imports and intra-Community acquisitions which are tax exempt, provided in Article 142;

    e) operations provided in letters a) - c), that are exempt without a right of deduction, being carried out by the small enterprises that apply the special exemption arrangements provided in Article 152, for which not tax is payable and the deduction of tax payable or paid for acquisitions is not allowed.

CHAPTER III - Taxable persons

ART. 127 - Taxable persons and economic activities

    (1) A taxable person shall be considered any person which carries out, in an independent manner and regardless of the place, economic activities of the nature of those provided in paragraph (2), whatever the purpose or the outcome of such activities might be.

    (2) Within the meaning of the present title, the economic activities shall include the activities of producers, traders or service providers, including extractive and agricultural activities and freelance activities or activities assimilated thereto. An economic activity shall also include the exploitation of tangible or intangible assets for the purpose of the permanent obtaining of incomes.

    (2^1) The situations when the natural persons carry out supplies of immovable assets become taxable persons are explained by norms.

    (3) The employees or any other persons related to an employer by an individual employment contract or by any other legal instruments which create an employer/employee relationship regarding the work conditions, remuneration or other obligations of the employer shall not act in an independent manner.

    (4) The public institutions shall not be taxable persons for the activities which are pursued in the capacity of public authorities, even if contributions, fees, royalties or other payments are collected for pursuing such activities, except for those activities that would cause distortion of competition if the public institutions would be treated as non-taxable persons, as well as for those provided in paragraphs (5) and (6).

    (5) The public institutions shall be taxable persons for activities pursued in the capacity of public authorities, but that are tax exempt, according to Article 141.

    (6) The public institutions shall also be taxable persons for the following activities:

    a) telecommunications;

    b) supply of water, gas, electric energy, thermal energy, agents of refrigeration and others of this nature;

    c) transport of goods and persons;

    d) services supplied in ports and airports;

    e) supply of new goods produced for sale;

    f) activity of commercial fairs and exhibitions;

    g) storage;

    h) activities of commercial publicity bodies;

    i) activities of travel agents;

    j) activities of stores for the staff, canteens, restaurants and other similar establishments;

    k) operations of public radio and television stations.

    (7) By derogation from the provisions of paragraph (1), any person carrying out occasionally an intra-Community supply of new means of transport shall be considered taxable person for any such supply.

    (8) Under the terms and within the limits provided in the norms, the group of taxable persons established in Romania that, being legally independent, are closely linked to each other from an organisational, financial and economic viewpoint shall be regarded as a single taxable group.

    (9) Any associate or partner of an association or organisation without legal personality shall be regarded as separate taxable person for those economic activities that are not carried out on behalf of such association or organisation.

    (10) The joint ventures shall not give rise to a separate taxable person. The associations of the sort of joint ventures, consortium or other types of associations for commercial purposes, without legal personality and established pursuant to the law, shall be treated as joint ventures.

CHAPTER IV - Operations within the scope of tax

ART. 128 - Supply of goods

    (1) A supply of goods means any transfer of the right to dispose of the goods as an owner.

    (2) It shall be considered that a taxable person, acting on their own, but on account of another person, as agent, in a supply of goods, has acquired and supplied such goods itself, under the terms established by the norms.

    (3) The following operations shall also be considered supplies of goods within the meaning of paragraph (1):

    a) the actual handing over of goods to another person within an instalment sale contract or any other type of contract which provides that the ownership is transferred at the latest at the moment when the last outstanding instalment is paid, with the exception of leasing contracts;

    b) the transfer of the property right over the goods, as a result forced execution;

    c) the passing to the public domain of certain goods from the patrimony of taxable persons, under the conditions provided by the legislation referring to the public property and its legal status, in exchange for compensation.

    (4) The following operations shall be assimilated to the supply of goods against a consideration:

    a) taking over by a taxable person of goods acquired or produced by such person in order to be used for purposes which are not related to the economic activity pursued if the value-added tax for such goods or for the component parts of the goods was fully or partly deducted;

    b) taking over by a taxable person of goods acquired or produced by such person in order to be made available to other persons for free, if the value-added tax for such goods or for the component parts of the goods was fully or partly deducted;

    c) taking over by a taxable person of tangible movable acquired or produced by such person, other than the capital goods provided in Article 149 (1) a), in order to be used for the purpose of some operations that do not give the full right to deduction, if the tax related to such goods was fully or partly deducted on the date of acquisition;

    d) goods found missing from administration, with the exception of those provided in paragraph (8) a) - c).

    (5) Any distribution of goods from the goods of a company to its associates or shareholders, including a distribution of goods related to the liquidation or the dissolution without liquidation of the company, except for the transfer provided in paragraph (7), shall be a supply of goods for consideration, if the tax for such goods or for the component parts of the goods was fully or partly deducted.

    (6) In case of two or more successive transfers of the property right over a good, each transfer shall be considered a separate supply of the good even if the good is transferred directly to the final beneficiary.

    (7) The transfer of all assets or of part of these, on the occasion of the transfer of assets or, as applicable, of liabilities, irrespective of whether it is made as a consequence of operations such as divisions, merger, or paid as a contribution in kind to the capital of a company, shall not be a supply of goods if the asset's receiver is a taxable person. The asset's receiver shall be considered to be the successor of the transferor as regards the adjustment of the deduction right provided by the law.

    (8) The following shall not be supplies of good, within the meaning of paragraph (1):

    a) goods destroyed as a result of natural disasters or other force majeure, as well as the stolen or lost goods, with lawful evidence, as provided by the norms;

    b) goods in the nature of stocks which are qualitatively damaged, which may no longer be turned to account, as well as broken fixed tangible assets, under the conditions provided by norms;

    c) perishables, within the limits provided by the law;

    d) goods granted for free from the state reserve as foreign or domestic humanitarian assistance;

    e) granting goods for free as samples within promotional campaigns, for testing products or for demonstrations at sale points, as well as other goods granted for the purpose of stimulating sales under the terms established by norms;

    f) granting goods for free within actions of sponsorship, patronage of art, protocol/representation, as well as other destinations provided by the law, under the conditions provided by norms.

    (9) The intra-Community supply shall be a supply of goods, within the meaning of paragraph (1), that are dispatched or transported from a Member State to another Member State by the supplier or by the person which is the beneficiary of the supply or by another person on their behalf.

    (10) The transfer by a taxable person of goods belonging to its economic activity from Romania to another Members State shall be assimilated to the intra-Community supply for a consideration, except for non-transfers provided in paragraph (12).

    (11) The transfer provided in paragraph (10) shall be the dispatch or transport of any tangible movables from Romania by another Member State, by the taxable person or by another person on his behalf, for being used for the purpose of its economic activity.

    (12) For the purpose of this title, non-transfer means dispatch or transport of a good from Romania to another Member State, by the taxable person or by another person on his account, to be used for the purpose of one of the following operations:

    a) supply of such good, carried out by the taxable person within the territory of the Member State of destination of the dispatched or transported goods, under the terms provided in Article 132 (5) and (6) concerning the distance sale;

    b) supply of such good, carried out by the taxable person within the territory of the Member State of destination of the dispatched or transported goods, under the terms provided in Article 132 (1) b) on the deliveries with installation or assembly, made by a supplier or on its behalf;

    c) supply of such asset, carried out by the taxable person on board of vessels, aircrafts or trains, during the transport of persons within the Community, under the terms provided in Article 132 (1) d);

    d) supply of such asset, carried out by the taxable person under the terms provided in Article 143 (2) with regard to the exempt intra-Community supplies, in Article 143 (1) a) and b) with regard to the exemptions for the export supplies and in Article 143 (1) h), i), j), k) and m) with regard to the exemptions for the supplies destined to vessels, aircrafts, diplomatic missions and consular office, as well as to the international organisations and NATO forces;

    e) supply of gas through the natural gas or electricity supply network, under the terms provided in Article 132 (1) e) and f) on the place of supply of such goods;

    f) provision of services to the benefit of the taxable person, that involves works on the tangible assets carried out in the Member State where the dispatch or transport of the good ends, provided that the goods, after processing, be returned to the taxable person from Romania which was the initial consignor or transporter;

    g) temporary use of such good within the Member State of destination of the dispatched or transported good, for the purpose of provision of services within the Member State of destination, by the taxable person established in Romania;

    h) the temporary use of such good, for the period not exceeding 24 months, within the territory of another Member State, provided that the importation of the same good from a third country, with a view to temporary use, would benefit from the temporary admission customs procedure with full exemption of import rights.

    (13) In case one of the conditions provided in paragraph (12) is no longer fulfilled the dispatch or transport of such good is considered as a transfer from Romania in another Member State. In this case, the transfer shall be considered carried out at the time when the condition is no longer met.

    (14) The order of the minister of public finance may introduce simplification measures with regard to the application of paragraphs (10) - (13).

ART. 129 - Provision of services

    (1) A provision of services shall be any operation which is not a supply of goods, as defined in Article 128.

    (2) When a taxable person acting in its own name, but in the account of another person, is part of a provision of services, it shall be considered to have received and supplied itself such services.

    (3) The provision of services shall include operations such as:

    a) the rental of goods or the transmission of the use of goods under a leasing contract;

    b) the assignment of intangible assets, regardless of whether they are or not subject to an ownership right, such as: the assignment and/or transfer of the use of copyrights, patents, licenses, trademarks and other similar rights;

    c) the commitment not to carry on an economic activity, not to compete with another person, or to tolerate an action or a situation;

    d) provision of services on the basis of an order issued by/or on behalf of a public authority or according to the law;

    e) intermediation services carried out by persons acting in the name of and in the account of another person when they intervene in a supply of goods or provision of services.

    (3) The following shall be assimilated to the provision of services for a consideration:

    a) the temporary use of goods which are part of the assets of a taxable person for purposes not related to its economic activity or to be made available for the use of other persons for free, if the tax for such goods was fully or partly deducted;

    b) the services belonging to the economic activity of the taxable person, provided for free for the personal use of his/her employees or of other persons.

    (4) There shall not be provision of services for a consideration:

    a) use of goods resulted from the activity of a taxable person, as part of a provision of services free of charge, made within the actions for sponsorship, patronage of art or protocol or for other destinations provided by the law, under the terms established by the norms;

    b) the services belonging to the economic activity of the taxable person, provided free of charge for advertising purposes or for the purpose of stimulating sales;

    c) services provided free of charge within the warranty period of the person that initially carried out the supply of goods or the provision of services.

    (6) *** Repealed

    (7) The provisions of Article 128 (5) and (7) shall apply accordingly to the provisions of services.

ART. 130 - Exchange of goods or services

    In case of an operation which involves a supply of goods and/or a provision of services in exchange for a supply of goods and/or a provision of services, each taxable person shall be considered to have made a supply of goods and/or a provision of services for a consideration.

ART. 130^1 - Intra-community acquisitions of goods

    (1) Intra-Community acquisition of goods shall mean acquisition of the right to dispose as owner of movable tangible property dispatched or transported to the destination indicated by the person acquiring the goods, by the supplier or by another person on behalf of the vendor or the person acquiring the goods to a Member State other than that from which the goods are dispatched or transported.

    (2) The following shall be assimilated to intra-Community acquisition of goods for consideration:

    a) the use in Romania by a taxable person for the purposes of his own economic activity of goods dispatched or transported by or on behalf of that taxable person from another Member State within the territory of which the goods were produced, extracted, processed, purchased, acquired or imported by it, for the purpose of carrying out its own activity, in case it would have been carried out from Romania into that other Member State, it would be treated as a transfer of goods to another Member State, in compliance with the provisions of Article 128 (10) and (11);

    b) the appropriation of goods by the Romanian forces for their use or for the use of the civilian staff within the Romanian forces, which they have acquired in another Member State, that is party of the North Atlantic Treaty, signed at Washington on 4 April 1949, and the acquisition of which was not subject to the general rules governing taxation in that Member State, when the importation of these goods could not benefit from the exemption set out in Article 142 (1) (g).

    (3) Likewise, it shall be considered that the intra-Community acquisition of goods was effected for a consideration if its supply, carried out in Romania, would have been treated as a supply of goods for a consideration.

    (4) It shall be assimilated to an intra-Community acquisitions also the acquisition by a non-taxable legal person of imported goods by that person in the Community and transported or dispatched to another Member State than the one where the import was effected. The non-taxable legal person shall benefit by the refund of the tax paid for the import of goods, if it is proved that its intra-Community acquisition was subject to tax in the Member State of destination of the goods dispatched or transported.

    (5) The order of the minister of public finance may introduce simplification measures with regard to the application of paragraph (2) a).

ART. 131 - Import of goods

    An import of goods shall be:

    a) the entry into the Community territory of goods are not released for free movement pursuant to Article 24 of the Treaty establishing the European Community;

    b) besides the operations provided in letter a), the entry into the Community of goods released for free movement, coming from a third territory, that is part of the Community customs territory.

CHAPTER V - Place of taxable operations

ART. 132 - Place of supply of goods

    (1) The place of supply of goods shall be deemed to be:

    a) in the case of goods dispatched or transported either by the supplier, the buyer or by a third person, the place where the goods are at the time when dispatch or transport to the person to whom they are supplied begins. If the place of supply, established according to these provisions, is outside the Community territory, the place of supply by the importer and the place of any subsequent supply shall be deemed the Member State of import of goods, and the goods shall be deemed as having been transported or dispatched from the Member State of import;

    b) the place where the goods are installed or assembled by or on behalf of the supplier, in case of goods subject to installation or assembly;

    c) the place where the goods are when the made available to the buyer, in the case of goods not dispatched or transported;

    d) the point of the departure of the transport of passengers, in the case of goods supplied on board ships, aircraft or trains during the part of a transport of passengers effected in the Community, if:

    1. the part of a transport of passengers effected in the Community represents the part of the transport effected, without a stop outside the Community, between the point of departure and the point of arrival of the transport of passengers;

    2. the point of departure of the transport of passengers represents the first point of passenger embarkation foreseen within the Community, where relevant after a leg outside the Community;

    3. the point of arrival of the transport of passengers represents the last point of disembarkation of passengers foreseen within the Community of passengers who embarked in the Community, where relevant before a leg outside the Community;

    e) in the case of the supply of gas through the natural gas distribution system, or the system of supply of electricity, to a taxable dealer, the place where that taxable dealer has established his business or has a fixed establishment for which the goods are supplied, or, in the absence of such head office, the place where he has his permanent address or usually resides. Taxable dealer means a taxable person whose principal activity in respect of purchases of gas and electricity is to resell such products and whose own consumption of these products is negligible;

    e) in the case of the supply of gas through the natural gas distribution system, or the system of supply of electricity, where such a supply is not covered by point e), the place where the customer has effective use and consumption of gas or electricity. Where the goods are not in fact consumed by this customer, but supplied to another party, the gas or electricity not consumed are deemed to have been used and consumed at the place where the new buyer has established his business or has a fixed establishment for which the goods are supplied. In the absence of such a place of establishment, he is deemed to have used and consumed the goods at the place where he has his permanent address or usually resides.

    (2) By way of derogation from paragraph (1) a), in case of a distance sale effected in a Member State to Romania, the place of supply shall be deemed as being in Romania, if the supply is effected by a taxable buyer or non-taxable legal person that benefits by the derogation in Article 126 (4) or by any other non-taxable person and if the following conditions are met:

    a) the total value of distance sales transported or dispatched in Romania by a supplier, during the calendar when a certain distance sale is carried out, the value of such distance sale inclusive, or in the previous calendar year, exceeds the distance sales thresholds of EUR 35 000, of which the equivalent in ROL is established by norms;

    b) the supplier has opted in the Member State from which the goods are transported that its distance sales, that suppose the transport of goods from that Member State to Romania, be regarded as taking place in Romania.

    (3) The place of supply is always Romania, in case of distance sales of excisable products, carried out from a Member State by non-taxable persons from Romania, others than the non-taxable legal persons, without applying the threshold provided in paragraph (2) a).

    (4) The derogation provided in paragraph (2) shall not apply to distance sales from another Member State in Romania of:

    a) new means of transport;

    b) goods installed and assembled by the supplier or on its behalf;

    c) goods taxed in the Member State of departure, according to the special arrangements provided in Article 313, 326 or 333 of Directive 112 on second-hand goods, works of art, collectors' items or antiques, as defined in Article 152^2 (1);

    d) supply of gas through the natural gas distribution system and of electricity;

    e) excisable products, supplied to taxable persons and non-taxable legal persons.

    (5) By way of derogation from the provisions of paragraph (1) a) the place of supply for the distance sale carried out from Romania in another Member State shall be deemed as being in this other Member State, in case the supply is carried out by a person that does not communicate to the supplier a code of registration for VAT purposes, issued by the Member State where the transport or dispatch ends, if the following conditions are met:

    a) the total value of distance sales by a supplier and that suppose that the goods are transported or dispatched from Romania to another Member State, during the calendar year when a certain distance sale is carried out, the value of such distance sale inclusive, or in the previous calendar year, exceeds the distance sales threshold, established according to the value-added tax laws in such Member State, such sales having the place of supply in that state; or

    b) the supplier has opted in Romania that all its distance sales, that suppose the transport of goods from Romania to another Member State, be regarded as taking place in that Member State. The option shall be expressed under the terms established by the norms and shall be applied to all distance sales made to that Member State, in the calendar year during which the option is carried out and in the next two years.

    (6) In case of distance sales of excisable products carried out in Romania by non-taxable persons from another Member State, others than non-taxable legal persons, the place of supply shall always be in the other Member State.

    (7) The derogation provided in paragraph (5) shall not apply to distance sales from Romania to another Member State of:

    a) new means of transport;

    b) goods installed and assembled by the supplier or on its behalf;

    c) goods taxed in Romania, according to the special arrangements provided in for second-hand goods, works of art, collectors' items or antiques, as defined in Article 152^2 (1);

    d) supply of gas through the natural gas distribution system and of electricity;

    e) excisable products, supplied to non-taxable legal persons and taxable persons.

    (8) For the application of paragraphs (2) - (7), when a distance sale supposes the dispatch or transport of goods sold from a third territory and the import by the supplier in a Member State, other than the Member State where the goods are dispatched or transported for the purpose of being supplied to the customer, it shall be deemed that the goods were dispatched or transported from the Member State where the import takes place.

ART. 132^1 - Place of the intra-Community acquisition of goods

    (1) The place of the intra-Community acquisition of goods shall be deemed to be the place where the goods are at the time when dispatch or transport of goods ends.

    (2) In case of intra-Community acquisition of goods, provided in Article 126 (3) a), if the buyer communicates to the supplier a valid registration code for VAT purposes, issued by the authorities in a Member State, other than the one where the intra-Community acquisition takes place, according to paragraph (1), the place of such intra-Community acquisition shall be considered as taking place within the Member State that issued the registration code for VAT purposes.

    (3) If the intra-Community acquisition was subject to tax in another Member State according to paragraph (1) and in Romanian, according to paragraph (2), the taxable amount shall be reduced accordingly in Romania.

    (4) The provisions of paragraph (2) shall not apply if the buyer makes proof that the intra-Community acquisition of goods was subject to the value-added tax in the Member State where the intra-Community acquisition of goods takes place, according to paragraph (1).

    (5) The provisions of paragraph (2) shall not apply in case of triangular operations when the reselling buyer registered for VAT purposes in Romania in accordance with Article 153 makes proof that he has effected this non-taxable intra-Community acquisition on the territory of another Member State, under conditions similar to those provided in Article 126 (8) b), in view of a subsequent supply effected in that Member State. The obligations of the persons involved in triangular operations shall be provided in the norms.

ART. 132^2 - Place of import of goods

    (1) The place of import of goods shall be the Member State within the territory of which the goods are when they enter the Community.

    (2) By way of exception from the provisions of paragraph (1), where goods referred to in paragraph Article 131 a) not released for free movement, are placed under one of the procedures or situations referred to in Article 144 (1) a) points 1 - 7, on entry into the Community, the place of import of such goods shall be the Member State within the territory of which they cease to be covered by those procedures or situations.

    (3) When goods referred to in Article 131 b) that are released for free movement on entry into the Community are in one of the situations that would allow, if imported in the Community, within the meaning of Article 131 a), benefit by one of the procedures referred to in Article 144 (1) a) points 1 - 7 or are under an internal transit procedure, the place of import shall be considered to be the Member State within whose territory these procedures or this proceedings are concluded.

ART. 133 - Place of provision of services

    (1) For the purpose of applying the rules concerning the place of supply of services:

    a) a taxable person who also carries out activities or transactions that are not considered to be taxable in accordance with Article 126 (1) - (4) shall be regarded as a taxable person in respect of all services rendered to him;

    b) a non-taxable legal person who is identified for VAT purposes shall be regarded as a taxable person.

    (2) The place of supply of services to a taxable person acting as such shall be the place where that person which is the beneficiary of the services has established his place of business. However, if those services are provided to a fixed establishment of the taxable person located in a place other than the place where he has established his place of business, the place of supply of those services shall be the place where that fixed establishment of the person which is the beneficiary of the services is located. In the absence of such place of establishment or fixed establishment, the place of supply of services shall be the place where the taxable person who receives such services has his permanent address or usually resides.

    (3) The place of supply of services to a non-taxable person shall be the place where the supplier has established his place of business. However, if those services are provided from a fixed establishment of the supplier located in a place other than the place where he has established his place of business, the place of supply of those services shall be the place where that fixed establishment is located. In the absence of such place of establishment or fixed establishment, the place of supply of services shall be the place where the supplier has his permanent address or usually resides.

    (4) By way of exception from the provisions of paragraphs (2) and (3), for the following supply of services the place of supply of services shall be deemed as:

    a) the place where the immovable property is located, for the supply of services connected with immovable property, including the services of experts and estate agents, the provision of accommodation in the hotel sector or in sectors with a similar function, such as holiday camps or sites developed for use as camping sites, the granting of rights to use immovable property and services for the preparation and coordination of construction work, such as the services of architects and of firms providing on-site supervision;

    b) the place where the transport takes place, proportionate to the distances covered, in case of services of passenger transport;

    c) the place where services are physically carried out, in case of main services and ancillary services relating to cultural, artistic, sporting, scientific, educational, entertainment or similar activities, such as fairs and exhibitions, including the supply of services of the organisers of such activities;

    d) the place where services are physically carried out, in case of restaurant and catering services other than those physically carried out on board ships, aircraft or trains during the section of a passenger transport operation effected within the Community;

    e) the place where the means of transport is actually put at the disposal of the customer, in case of short-term hiring of a means of transport. Short-term shall mean the continuous possession or use of the means of transport throughout a period of not more than thirty days and, in the case of vessels, not more than ninety days.

    f) the point of departure of the passenger transport operation, for the restaurant and catering services which are physically carried out on board ships, aircraft or trains during the section of a passenger transport operation effected within the Community. Section of a passenger transport operation effected within the Community shall mean the section of the operation effected, without a stopover outside the Community, between the point of departure and the point of arrival of the passenger transport operation. Point of departure of a passenger transport operation shall mean the first scheduled point of passenger embarkation within the Community, where applicable, after a stopover outside the Community. Point of arrival of a passenger transport operation shall mean the last scheduled point of disembarkation within the Community of passengers who embarked in the Community, where applicable, before a stopover outside the Community. In the case of a return trip, the return leg shall be regarded as a separate transport operation.

    (5) By way of exception from the provisions of paragraph (3), the place of subsequent supply of services shall be considered to be the following:

    a) the place where the main operation is carried out in compliance with the provisions of this title, in case of services provided by an intermediary who acts in the name and on behalf of another person and the beneficiary is a non-taxable income;

    b) the place where the transport is physically carried out, proportionate to the distances covered, in case of services of transport of goods other than the intra-Community transport of goods to non-taxable persons;

    c) place of departure of an intra-Community transport of goods, for services of intra-Community transport of goods to non-taxable persons. Intra-Community transport of goods shall mean any transport of goods in respect of which the place of departure and the place of arrival are situated within the territories of two different Member States. Place of departure shall mean the place where transport of the goods actually begins, irrespective of distances covered in order to reach the place where the goods are located and place of arrival shall mean the place where transport of the goods actually ends.

    d) the place where the services are physically carried out to non-taxable persons in case of the following services:

    1. services consisting in ancillary transport activities such as loading, unloading, handling and similar activities;

    2. services consisting in works on movable tangible property;

    3. services consisting in valuations on movable tangible property.

    e) the place where the beneficiary is established or has the permanent establishment or usual residence, provided that such beneficiary is a non-taxable person established or with the permanent establishment or usual residence outside the Community, in case of the following services:

    1. the rental of tangible movables, except for all means of transport;

    2. the leasing operations which have as object the use of tangible movables, except for all means of transport;

    3. the transfer and/or transmission of the use of copyrights, patents, licenses, trademarks and other similar rights;

    4. advertising and marketing services;

    5. services of consulting, of engineering, legal services and services provided by lawyers, accountants and chartered accountants, services of research bureaux and other similar services, as well as data processing and data supply;

    6. financial and banking operations and insurance operations, including reinsurance, with the exception of the rental of safe deposit boxes;

    7. the supply of personnel;

    8. granting access to the natural gas distribution systems and electricity distribution systems, including services of transport and transmission through these systems, as well as other service provision directly related to these;

    9. telecommunication services. Telecommunication services means services having as object the transmission, emission or reception of signals, documents, images and sounds or information of any nature by wire, radio, optical means or other electromagnetic means, including the assignment of the right to use means for such transmission, emission or reception. The telecommunication services shall also include the supply of access to global information networks. In case the telecommunication services are rendered by a person with the place of business established outside the Community or with a fixed establishment outside the Community from where the services are rendered or which is, in the absence of o a place of business or of a fixed establishment, permanently residing or having its habitual residence in the Community, to a non-taxable person which is established, has its permanent residence or habitual residence within the Community it shall be deemed that the place of supply is in Romania, if the services were actually used in Romania;

    10. radio and television broadcasting services. In case the radio and television broadcasting services are rendered by a person with the place of business established outside the Community or with a fixed establishment outside the Community from where the services are rendered or which is, in the absence of a place of business or of a fixed establishment, permanently residing or having its habitual residence in the Community, to a non-taxable person which is established, has its permanent residence or habitual residence within the Community it shall be deemed that the place of supply is in Romania, if the services were actually used in Romania;

    11. electronically supplied services. In case the electronically supplied services are rendered by a person with the place of business established outside the Community or with a fixed establishment outside the Community from where the services are rendered or which is, in the absence of a place of business or of a fixed establishment, permanently residing or having its habitual residence in the Community, to a non-taxable person which is established, has its permanent residence or habitual residence within the Community, it shall be deemed that the place of supply is in Romania;

    12. the obligation to refrain from pursuing or exercising, in whole or in part, an economic activity or a right specified under this letter.

    (6) By way of derogation from the provisions of paragraph (3), the services of rental of means of transport, other than the short-term hiring, and services of lease of means of transport, shall be deemed as having the place of supply:

    a) in Romania, when such services are rendered by a taxable person, with the place of business or with a fixed establishment outside the Community, from where the services are provided, to a non-taxable person which is established, has its permanent residence or habitual residence in Romania, if the services are actually used and operated in Romania;

    b) outside the Community, when such services are provided by a taxable person, established or with a fixed establishment in Romania, from where the services are provided to a non-taxable person which is established, has its permanent residence or habitual residence outside the Community, if the services are actually used and operated outside the Community.

    (7) By way of exception from the provisions of paragraph (2), for the services consisting in activities ancillary to transport, such as loading, unloading, handling and similar activities, services consisting in works on movable tangible property and valuations on movable tangible property, services of transport of goods performed in Romania, when these services are supplied by a taxable person which was not established within the Community territory, the place of supply shall be deemed in Romania, if the services are actually used and operated in Romania.

CHAPTER VI - Chargeable event and chargeability of value-added tax

ART. 134 - Chargeable event and chargeability - definitions

    (1) Chargeable event shall mean the occurrence by virtue of which the legal conditions necessary for tax to become chargeable are fulfilled.

    (2) The chargeability of tax is the date when the tax authority becomes entitled under the law at a given moment to claim the payment of tax from the person liable to pay, notwithstanding that the time of payment may be deferred.

    (3) The chargeability of tax is the date when a person is liable to pay the tax to the state budget, according to the provisions of Article 157 (1). This date shall also determine the time as of which delay increases are owed for the failure to pay the tax.

    (4) The applicable taxable regime for the taxable operations shall be the regime in force on the date when the chargeable event occurs, except for the cases provided in Article 134^2 (2), for which the taxable regime in force on the date of tax chargeability applies.

    (5) In case the taxable regime is changed the regularisation shall begin in order to apply the taxation regime in force on the date of supply of goods or of services for the cases provided in Article 134^2 (2) a), only if the invoice is issued for the partial equivalent value of the supply of goods or of services, and in Article 134^2 (2) b), it down payment was cashed for the partial value of the supply of goods or of services. The provisions of this paragraph shall not apply to small undertakings provided in Article 152, which are registered for VAT purposes according to Article 153.

    (6) By way of exception for the provisions of paragraphs (4) and (5), in case of changes of quotas the provisions of Article 140 (3) and (4) shall apply, and for the operations provided in Article 160 the applicable regime shall be that valid on the date when the chargeability occurs.

    (7) In case of provisions of services for which down payments for the partial value of the supply of services and/or invoices have been issued for the partial value of the provision of services until the 31 December 2009 inclusively, but the tax chargeable event occurs after this date, the provisions of paragraphs (4) and (5).

ART. 134^1 - Chargeable event for supply of goods and provision of services

    (1) The chargeable event occurs on the date of supply of goods and of services, with the exceptions provided in this chapter.

    (2) For the supply of goods based on a consignment contract it shall be deemed that the goods are supplied from the consignor to the consignee at the date when the consignee supplies the goods to its customers.

    (3) For the goods transmitted in view of testing or verification of conformity, the goods shall be deemed as supplied at the date when the beneficiary accepts the goods.

    (4) For the stocks made available to the client, it shall be considered that the supply of goods takes place at the date when the client withdraws the goods from the stocks in view of using them, mostly for the production activity.

    (5) The norms shall define the consignment contracts, the stocks available to the client, the goods supplied in view of testing or verification of conformity.

    (6) For the supply of tangible assets, including immovable property, the date of supply shall be the date when the transfer of the right to dispose of the assets as owner occurs. By way of exception, in case of contracts that provide for the payment to be made in instalments or of any other type of contract providing that the ownership is awarded at the latest at the time when the last due amount is paid, except for the lease contracts, the date of supply shall be the date when the asset is supplied to the beneficiary.

    (7) The supply of services which determine settlements or successive payments, such as building-assembly services, consulting, research, expertise and other similar works, shall be deemed as carried out on the date when there are issued work statements, work reports, other similar documents based on which the services carried out are established or, as applicable, depending on the contract provisions, on the date when they are accepted by the beneficiaries. However, the settlement period can not exceed on year.

    (8) In case of supply of goods and of provision of services which are carried out on a continuous basis, others than the operations provided in letter (7), such as: natural gas, water, telephone services, electric energy and others, it shall be deemed that the supply is carried out on the dates specified in the contract for the payment of the goods supplied or on the date when an invoice is issued, but the settlement period may not exceed one year.

    (9) In case of operations of rental, hiring, concession and lease of goods, the service shall be deemed as carried out at each date specified in the contract for making the payment.

    (10) For the supply of services for which the duty is payable by the beneficiary of the services in compliance with Article 150 (2), which are carried out on a continuous basis for a period longer than one year and which do not give rise to settlements or successive payments during this period, they shall be considered carried out upon the expiry of each calendar year, as long as the supply of services is still ongoing.

ART. 134^2*) - Chargeability for supply of goods and/or provision of services

    (1) The chargeability of tax shall occur when the chargeable event takes place.

    (2) By derogation from the provisions of paragraph (1), the chargeability of tax shall occur:

    a) on the date when the fiscal invoice is issued before the chargeable event takes place;

    b) on the date when advance payments are cashed, for advance payments effected before the chargeable event takes place. The advance payments cashed for the payment of imports and of value-added tax related to import, as well as any advance payments cashed for the operations exempt from value-added tax or which are not subject to the tax shall be excepted from these provisions. Advance payments mean the partial or full payment of the equivalent value of the goods or services, before the are supplied or provided;

    c) on the date of drawing the cash, for the supply of goods or the provision of services through a vending machines, games machine or other similar machines.

    (3) The tax shall be chargeable on the date when any of the events mentioned in Article 138. However, the taxation regime and the applicable quotas shall be the same as those of the basic operation that generated these events.

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    *) 1. We reproduce further the provisions of Article 3 of the Government Emergency Ordinance No 67/2009:

    "ART. 3

    By way of derogation from the provisions of Article 134^2 of the Law No 571/2003 on the Fiscal Code, as subsequently amended and supplemented, the chargeability of the value-added tax occurs on the date when the National Administration of State Reserves collects the total or partial equivalent value of this tax, but not latter than 30 June 2010 inclusively."

    2. We reproduce further the provisions of Article 8 (1) of the Government Emergency Ordinance No 67/2009:

    "ART. 8

    (1) By way of derogation from the provisions of Article 134^2 of the Law No 571/2003 on the Fiscal Code, as subsequently amended and supplemented, for the quantities of fuel provided in Article 7, the chargeability of the value-added tax occurs on the date when the National Administration of State Reserves collects the total or partial equivalent value of this tax, but not latter than 30 June 2010 inclusively."

    According to the single article of the Government Ordinance No 10/2010, the time limits provided in Article 8 (1) and (2) of the Government Emergency Ordinance No 67/2009 shall be prorogued until 30 June 2011 inclusively.

    3. We reproduce further the provisions of Article 1 of the Government Emergency Ordinance No 86/2009:

    "ART. 1

    By way of derogation from the provisions of Article 134^2 of the Law No 571/2003 on the Fiscal Code, as subsequently amended and supplemented, the chargeability of the value-added tax for the supplies of goods/provisions of services performed to the Ministry of National Defence by the National Company "Romtehnica" - S.A., which acts as commissionary, in its own name, but on behalf of the Ministry of National Defence, occurs on the date when the National Company "Romtehnica" - S.A. collects the total equivalent value of the goods supplied/services provided and related tax, but not latter than 31 August 2010. For the goods/services granted free of charge, for which VAT is payable according to Title VI - Value-added tax the Law No 571/2003 on the Fiscal Code, as subsequently amended and supplemented, the chargeability of the value-added tax occurs on the date when the National Company "Romtehnica" - S.A. collects the total or partial equivalent value of this tax from the Ministry of National Defence, but not latter than 31 August 2010."

    4. We reproduce further the provisions of Article 2 of the Government Emergency Ordinance No 3/2010:

    "ART. 2

    (1) In case of failure to reimburse the loan provided in Article 1, the economic operators shall cover, for the first 30 days, the delay penalties amounting to 1% of the value of the product provided in the loan agreement, and afterwards the National Administration of State Reserves and Special Matters shall issue invoices for the value of the products calculated at the market price, the chargeability of the value added tax arising upon the partial or total collection of the invoice, by way of derogation from the provisions of Article 134^2 of the Law No. 571/2003 on the Fiscal Code, as subsequently amended and supplemented.

    (2) Until the full remedy of the National Administration of State Reserves and Special Matters, the economic operators with debts shall cover the payment delay increases, at the level of those provided by the law for budgetary debts, as well as debts at the market level, levied for the entire duration of the performance of the agreement.

    (3) The quantities of crude oil that are going to be borrowed shall be returned as products with sulphur contents below 1% in accordance with the Government Decision No. 470/2007 on limiting the sulphur contents in the liquid fuels."

ART. 134^3 - Chargeability for intra-Community tax-exempt supplies of goods

    (1) By derogation from the provisions of Article 134^2, in case of intra-Community supplies of goods, tax-exempt according to Article 143 (2), the chargeability of tax shall occur on the 15th day of the month following the one when the chargeable event occurred.

    (2) By derogation from the provisions of paragraph (1), the chargeability of tax shall occur on the date of issuance of the invoice provided in Article 155 (1), if the invoice is issued prior to the 15th day of the month following the one when the chargeable event occurred.

ART. 135 - Chargeable event and chargeability for intra-Community acquisitions of goods

    (1) In case of intra-Community acquisitions of goods, the chargeable event takes place at the date when the chargeable event would occur for similar supply of goods, in the Member State where the acquisition is carried out.

    (2) In case of intra-Community acquisitions of goods, the chargeability of tax occurs on the 15th day of the month following the one when the chargeable event occurred.

    (3) By way of exception from the provisions of paragraph (2), the chargeability of tax occurs at the date of issuance of the invoice provided by the legislation of another Member State in the article equivalent to Article 155 (1), if it is issued not later than the 15th day of the month following the month when the chargeable event occurred.

ART. 136 - Chargeable event and chargeability for the import of goods

    (1) Where goods, upon import, are subject to customs duties, to agricultural levies or to Community charges having equivalent effect established under a common policy, the chargeable event shall occur and the value-added tax shall become chargeable when the chargeable event for those Community duties occurs and those duties become chargeable.

    (2) Where goods, upon import, are not subject to any of those Community duties provided in paragraph (1), the chargeable event shall occur and the value-added tax shall become chargeable when the chargeable event for those Community duties would occur and those duties would become chargeable if the imported goods were subject to such duties.

    (3) Where goods, upon import, are placed under a special customs procedure, provided in Article 144 (1) a) and d), the chargeable event shall occur and the value-added tax shall become chargeable at the date when these are no longer placed under such procedure.

CHAPTER VII - Taxable amount

ART. 137 - Taxable amount for supplies of goods and provision of services within the territory of the country

    (1) The taxable amount of the value-added tax shall consist of:

    a) for supplies of goods and provision of services, other than those provided in b) and c), everything that constitutes the consideration which has been or is going to be obtained by the supplier from the purchaser, beneficiary or a third party, including the subsidies directly linked to the price of such supplies;

    b) for the operations provided in Article 128 (3) c), the relevant compensation;

    c) for the operations provided in Article 128 (4) and (5), for the transfer provided in Article 128 (10) and for the intra-Community acquisitions considered as being made for a consideration provided in Article 130 (2) and (3), purchase price of such goods or of similar goods or, in the absence of a purchase price, the cost price, determined at the time of supply. If the goods are tangible fixed assets, the taxable amount shall be adjusted according to the procedure set forth in the norms;

    d) for the operations provided in Article 129 (4) the full cost to the taxable person for providing the services;

    e) in case of the exchange provided in Article 130 and, generally, when the payment is made fully or partly in kind or when the value of payment for a supply of goods or a provision of services was not agreed upon by the parties or can not be easily established, the taxable amount shall be deemed as being the market value for such supply/provision. For the purpose of this title, market value shall mean the total amount which, in order to obtain goods or services in question at that time, a client that is in the selling stage where the supply of goods or provision of services is carried out, must pay to an independent supplier or provider within the territory of the country where the supply or provision is subject to tax, under competitive terms. When a comparable supply of goods or provision of services can not be established, the market value shall mean:

    1. for goods, an amount not less than the purchase price of goods or of similar goods or, in the absence of a purchase price, the cost price, established at the time of supply;

    2. for services, an amount which is not less than the full costs of the taxable person for the supply of such service.

    (2) The taxable amount of the value-added tax shall include the following:

    a) taxes and charges, if the law does not provide otherwise, except for the value-added tax;

    b) incidental expenses, such as: commissions, packaging expenses, transport and insurance costs, covered by supplier/provider to the purchaser or the customer. The expenses invoiced by the supplier of goods or provider of services to the buyer, that are subject to a separate contract and that are related to the supplies of goods or the provisions of services in question, shall be incidental expenses.

    (3) The taxable amount shall not include:

    a) the rebates, refunds, discounts, and other price reductions granted by suppliers directly to customers on the date of chargeability of tax;

    b) the amounts representing damages-interest established by a final judgment, penalty charges and any other amounts requested for the total or partial non-fulfilment of contractual obligations, if the amounts are charged over the negotiated prices and/or tariffs. The taxable amount shall not exclude any amounts which, in fact, represent the equivalent value of goods supplied or services provided;

    c) the interests, charged after the date of supply or provision, applied for late payments;

    d) the value of packaging which circulates between the commodity suppliers and customers, by exchange, without invoicing;

    e) the amounts paid by a taxable person, on behalf and in the account of another person and which are later reimbursed to such supplier, as well as amounts cashed on behalf and in the account of another person.

ART. 138 - Adjustment of the taxable amount

    The taxable amount of the value-added tax shall be adjusted in the following cases:

    a) if a fiscal invoice was issued and, subsequently, the operation is fully or partly cancelled, before the supply of goods or provision of services;

    b) in case of total or partial refusals regarding the quantity, quality or prices of goods supplied or services provided, as well as in case of total or partial cancellation of the contract for the supply or provision in question as a result of a written agreement between parties or as a result of a final and irrevocable judgment or following an arbitrage;

    c) in case the price rebates, refunds, discounts, and other price reductions provided in Article 137 (3) a) are granted after the supply of goods or the provision of services;

    d) in case the equivalent value of goods supplied or services provided may not be cashed due to the bankruptcy of the beneficiary. The adjustment shall be allowed beginning with the date when the judgment closing the procedure provided by the Law No 85/2006 on the insolvency proceeding is rendered, a final and irrevocable judgment;

    e) in case the purchasers return packages in which the commodity is dispatched, for packaging which circulates based on invoicing.

ART. 138^1 - Taxable amount for intra-Community acquisitions

    (1) For the intra-Community acquisitions of goods the taxable amount shall be set based on the same elements as those used according to Article 137 (1) for the determination of the taxable amount in case of supply of the same goods within the country. In case of an intra-Community acquisition of goods, according to Article 130^1 (2) a), the taxable amount shall be determined according to the provisions of Article 137 (1) c) and of Article 137 (2).

    (2) The taxable amount shall also include the excise duties paid or payable in Romania by the person carrying out the intra-Community acquisition of a product subject to excise duties. When, after making an intra-Community acquisition of goods, the excise duties are returned to the person making the acquisition of goods in the Member State where the dispatch or transport of goods has started, the taxable amount of the intra-Community acquisition carried out in Romania shall be reduced accordingly.

ART. 139 - Taxable amount for import

    (1) The taxable amount for an import of goods shall be the customs value of the goods, determined according to the customs legislation in force, to which customs duties, customs commissions and other charges payable outside Romania, as well as those payable for the import of goods in Romania shall be added, except for the value-added tax to be charged.

    (2) The taxable amount shall also include incidental expenses, such as commissions and packaging, transport and insurance costs, which are incurred up to the first place of destination of the goods in Romania, is so far as such expenses were not included in the taxable amount determined according to paragraph (1). The first place of destination of goods shall be the destination stipulated on the transport document or any other document which accompanies the goods when they enter Romania or, failing such documents, the first place of discharge of goods in Romania.

    (3) The taxable amount shall not include the elements provided in Article 137 (3) a) - d).

ART. 139^1 - Exchange rate

    (1) If the amount used to determine the taxable amount for an import of goods is expressed in a foreign currency, the exchange rate shall be determined according to the Community provisions governing the calculation of the customs value.

    (2) If the elements used to determine the taxable amount of an operation, other than the import of goods, are expressed in foreign currency, the exchange rate to be applied shall be the last exchange rate communicated by the National Bank of Romania or the exchange rate used by the bank that makes the settlements of account, on the date when the tax becomes chargeable in relation to the operation in question.

CHAPTER VIII - Tax quotas

ART. 140 - Quotas

    (1) The standard quota shall be of 19% and shall apply to the taxable amount for any taxable operation which is not tax-exempt or which is not subject to reduced quotas.

    (2) The 9% reduced quota shall apply to the taxable amount for the following provision of services and/or supplies of goods:

    a) services consisting in rights of entrance to castles, museums, memorial houses, historical monuments, architectural and archeological monuments, zoos and botanical gardens, fairs, exhibitions and cultural events, cinemas, others than those exempt according to Article 141 (1) m);

    b) supply of textbooks, newspapers and magazines, school manuals, with the exception of those intended exclusively for publicity;

    c) supply of prostheses of any type and accessories to them, with the exception of dental prostheses;

    d) supply of orthopedic products;

    e) supply of medicines for human use and veterinary use;

    f) accommodation with hotels or within sectors with a similar function, including the lease of land arranged for camping.

    (2^1) The 5% reduced quota shall apply to the taxable amount for the supply of dwelling places granted as part of the social policy, including of land on which they are built. The land on which the dwelling place is built also includes the mark on the ground of the dwelling place. For the purpose of this title, dwelling place granted as part of the social policy shall mean:

    a) supply of buildings, including of land on which they are built, intended for being used as elderly homes and pensioners' houses;

    b) supply of buildings, including of land on which they are built, intended for being used as children home and recovery and rehabilitation centres for disabled minors;

    c) supply of buildings with a useful surface of maximum 120 sq.m., less the household dependencies, whose value, together with the land on which they are built, will not exceed ROL 380 000, less the value added tax, purchased by any unmarried person or family. The useful surface of the dwelling place shall be as defined by the Law on the dwelling place No 114/1996, republished, as subsequently amended and supplemented. The household dependencies shall be those defined by the Law No 50/1991 on licensing the performance of construction works, republished, as subsequently amended and supplemented. The reduced quota shall only apply in case of dwelling places which can be inhabited as such and if the land on which the dwelling place is built does not exceed 250 sq.m., including the mark on the ground of the dwelling place, in case of private dwelling houses. In case of buildings with more than two dwelling places, the undivided quota of the land related to each dwelling place can not exceed 250 sq.m., including the mark on the ground of each dwelling place. Any unmarried person or any family may acquire a single dwelling place with a 5% reduced quota, respectively:

    1. in case of unmarried persons, not to have owned or not to presently own any dwelling place which they purchased with a 5% quota;

    2. in case of families, the spouses must not have owned or must not presently own, individually or separately, any dwelling place which they purchased with a 5% quota;

    d) supply of buildings, including the land they are built on, to mayoralties in view of granting with subsidised rent to certain persons or families whose economic standing does not allow access to a dwelling place owned or the rental of a dwelling place complying with the market conditions.

    (3) The applicable quota of value-added tax shall be the quota in force on the date when the chargeable event occurs, with the exception of the operations provided in Article 134^2 (2) for which the quota in force on the date when chargeability of the tax applies.

    (4) In case of a change of quotas the regularisation shall be made to apply the quotas in force on the date of supplies of goods or provision of services, for the cases provided in Article 134^2 (2).

    (5) The applicable quota for an import of goods shall be the quota applied within the Romanian territory for the supply of the same good.

    (6) The applicable quota for intra-Community acquisition of goods shall be the quota applied on the Romanian territory for the supply of the same good and that is in force on the date when the tax becomes chargeable.

CHAPTER IX - Tax-exempt operations

ART. 141 - Exemptions for operations inside the country

    (1) The following operations of public interest shall be exempt from the value-added tax:

    a) hospital treatment, medical care, and closely-related operations carried out by units authorised for such activities, regardless of the form of organisation, such as hospitals, sanatoriums, rural or urban health centres, dispensaries, medical practices and laboratories, centres for medical care and diagnosis, treatment and recuperation resorts, emergency stations and other units authorised to carry on such activities;

    b) provision of services provided as part of their profession by dentists and dental technicians, as well as the supply of dental prostheses carried out by dentists and dental technicians;

    c) provisions of medical care and supervision services provided by medical and paramedical personnel, according to the legal provisions applicable;

    d) transport of sick or injured persons in vehicles specially designed for this purpose, by entities authorised for this purpose;

    e) supply of human origin organs, blood and milk;

    f) educational activities provided by the Law on education No 84/1995, republished, as subsequently amended and supplemented, vocational training of adults, as well as provision of services and the supplies of goods closely linked thereto carried out by public institutions or other authorised entities;

    g) supplies of goods and/or provision of services carried out by hostels and canteens organised near the authorised public institutions and entities provided in letter f), to the exclusive benefit of the persons directly involved in the activities exempt according to letter f);

    h) tutoring activities granted in particular by the teaching staff in the field of school, pre-university and university education;

    i) supplies of goods and/or provision of services closely related to social assistance and/or social protection carried out by public institutions or other entities recognised as having a social character, including those supplied by the old people's homes;

    j) provision of services and/or supplies of goods closely related to the protection of children and youth carried out by public institutions or other entities recognised as having a social character;

    k) provision of services and/or supplies of goods supplied for the collective benefit of members, in exchange for a fixed subscription fee according to the statute, by organisations without a patrimonial purpose which have an objective of a political, trade union, religious, patriotic, philosophical, philanthropic, employers' organisation, professional or civic nature, as well as objectives of representing the interest of their members, on the condition that such exemption does not cause distortions of competition;

    l) provision of services closely related to the practice of sports or physical training carried out by organisations without a patrimonial purpose for persons who practice sports or physical training;

    m) provisions of cultural services, as well as supplies of goods closely related to such services, provided by public institutions or non-profit-making cultural organisations, recognised as such by the Ministry of Culture and Cults;

    n) provision of services and/or supplies of goods provided by persons whose operations are exempt as provided in letter a), f), i) - m) on the occasion of events intended to raise financial support and organised for their exclusive benefit, on the condition that such exemptions do not produce distortions of competition;

    o) activities specific to the national public radio and television stations, other than commercial activities;

    p) public postal services of services and the supply of goods incidental thereto;

    q) services supplied by independent groups of persons whose operations are exempt from or are not subject to value-added tax, for the purpose of rendering their members the services directly necessary for the exercise of their activity, where these groups merely claim from their members exact refund of their share of the joint expenses, within the limits set by the norms and provided that such exemption is not likely to produce distortion of competition.

    (r) supply of personnel by the religious or philosophical institutions for the purpose of activities provided in letter a), f), i) and j).

    (2) Other operations exempt from the value-added tax:

    a) provisions of the following financial and banking services:

    1. granting and negotiation of credits and the management of credit by the person granting it;

    2. negotiation of credit guarantees or other guarantees or any operations with such guarantees, as well as the management of credit guarantees by the person granting the credit;

    3. any transaction, including negotiation, related to financial deposits and current accounts, payments, money transfers, debts, cheques or other negotiable instruments, as well as debt collecting;

    4. any transaction, including negotiation, related to foreign currency, banknotes or coins used as legal tender, with the exception of gold, silver coins or coins made of other metals or banknotes not usually used as legal tender or coins with numismatic value;

    5. any transaction, including negotiation, except management and safekeeping, in shares, interests in companies or associations, debt securities, bonds and other securities, excluding operations related to documents establishing title to goods;

    6. management of special investment funds;

    b) insurance and/or reinsurance operations, as well as the provision of services in connection with insurance and/or reinsurance operations which are provided by persons who intermediate such operations;

    c) bets, lotteries and other types of gambling organised by persons authorised, according to law, to carry on such activities;

    d) supply at face value of postage stamps valid for use for postal service, fiscal stamps, and other similar stamps;

    e) the lease, concession or rental of immovable property, with the following exceptions:

    1. the operations of accommodation which are carried out in the hotel sector or sectors with a similar function, including the lease of land arranged for camping;

    2. rental of spaces or locations for parking vehicles;

    3. the rental of equipment and machinery permanently fixed in immovables;

    4. the rental of safe deposit boxes;

    f) the supply of buildings/parts thereof, and of the lands on which they stand, as well as of any other lands. By way of exception, the exemption shall not apply for the supply of new constructions, of parts of new construction or of land destined for construction. For the purpose of this Article, the following definitions are provided:

    1. land destined for construction - means any arranged or non-arranged land on which constructions may be erected, according to the laws in force;

    2. construction means any fixed structure in or on the ground;

    3. supply of a new construction or of a new part thereof means the supply carried out not later than 31st December of the year following the one of the first occupation or use of construction or of part thereof, as applicable after transformation;

    4. a new building also includes any construction transformed so as its structure, nature or destination were altered or, in the absence of such alterations, if the costs of transformations, charges excluded, amounts up to 50% of the market value of the construction, less the land value, after the transformation;

    g) supplies of goods which were intended for an exempt activity, pursuant to this article, if the duty related to such goods was not deducted, as well as supplies of goods whose acquisition was subject to exclusion from the right of deduction according to Article 145 (5) a) and b) and Article 145^1.

    (3) Any taxable person may choose the tax operations provided in paragraph (2) e) and f), under the conditions established by norms.

ART. 142 - Exemptions on the import of goods and for intra-Community acquisitions

    (1) The following shall be exempt from the value-added tax:

    a) the import of goods and intra-Community acquisition whose supply in Romania is exempt from value-added tax inside the country in any situation;

    b) intra-Community acquisition of goods the import of which in Romania is in any situation exempt from tax, according to this article;

    c) intra-Community acquisition of goods for which, in accordance with Article 145 (2) b) - d), the acquirer of the goods in any situation would be entitled to full refund of the charges that would be payable if such acquisition had not been exempt;

    d) final importation of goods that satisfy the exemption conditions provided by: Council Directive 83/181/EEC of 28 March 1983 determining the scope of Article 14 (1) (d) of Directive 77/388/EEC as regards exemption from value-added tax on the final importation of certain goods, published in the Official Journal of European Communities (OJEC) L 105 of 23 April 1983, as subsequently amended and supplemented, Council Directive 2007/74/EC of 20 December 2007 on the exemption from value added tax and excise duty of goods imported by persons travelling from third countries, published in the Official Journal of European Communities (OJEC) L 346 of 29 December 2007, and Council Directive 79/2006/EC of 5 October 2006 on the exemption from taxes of imports of small consignments of goods of a non-commercial character from third countries, published in the Official Journal of European Communities (OJEC) L 286 of 17 October 2006;

    e) the import, under a diplomatic or consular treatment, of goods that benefit by exemption to the customs duties;

    f) the import of goods carried out in Romania by international organisations recognised as such by the public authorities from Romania, as well as by their members, within the limits and in accordance with the conditions provided in the conventions establishing such organisations or by headquarters agreements;

    g) the import of goods carried out in Romania by the armed forces of foreign states which are members of NATO for use by the armed forces or by the civilian personnel accompanying the armed forces or for the supply of their canteens or cafeteria, in case the forces are part to the common defence effort. It includes the import by the armed forces of the Great Britain and Northern Ireland established in Cyprus Island, according to the Treaty establishing the Republic of Cyprus of 16 August 1960, for use by the armed forces or by the civilian personnel accompanying the armed forces or for the supply of their canteens;

    h) re-importation of goods in Romania by the person who exported them outside the Community, in the same condition as they were at the time of export and whether such import benefits by the exemption from customs duties;

    i) re-importation of goods in Romania by the person who exported them outside the Community, in order to be subject to certain repairs, transformations, adjustments, assemblies or other works performed on the tangible movable assets, provided that this exemption be limited to the value of goods at the time of being exported outside the Community;

    j) importation into ports by sea fishing undertakings of their fishing products caught, unprocessed or after undergoing preservation for marketing but before being supplied;

    k) import of natural gas through the natural gas distribution system, or of electricity.

    l) the importation in Romania of goods transported from a third territory or a third country, where the supply of such goods by the importer qualifies for exempt supply, in accordance with Article 143 (2);

    m) importation of gold by the National Bank of Romania.

    (2) The norms shall establish, where necessary, the documents necessary to justify the tax exemption for the operations provided in paragraph (1) and, as applicable, the procedure and conditions that must be fulfilled in order to apply the tax exemption.

ART. 143 - Exemptions for exports or other similar operations, for intra-Community supplies and for international and intra-Community transport

    (1) The following shall be exempt from the value-added tax:

    a) supplies of goods which are dispatched or transported outside the Community by the supplier or by another person on his behalf;

    b) supplies of goods which are dispatched or transported outside the Community by a purchaser which is not established in Romania or by another person on his behalf, with the exception of goods transported by the purchaser himself and used for the equipment or supply of pleasure boats and private aircraft or travelling aircrafts or any other means of transport for private use. It is also exempt the supply of goods that are transported in the private luggage of the travellers not established in the Community, if the following conditions are met:

    - the traveller is not established in the Community, namely the address or permanent domicile is not inside the Community. The address or permanent domicile shall mean the place specified as such in the passport, identity card or in other document recognised as identity document by the Ministry of Interior and Administrative Reform;

    - the goods are transported outside the Community before the end of the third month following the one when the delivery takes place;

    - the total value of the supply, plus VAT, is higher than the equivalent value in ROL of EUR 175, established on an annual basis by applying the exchange rate obtained during the first working day of October and valid on 1 January of the next year;

    - the proof of export shall be made by an invoice or other document replacing it, bearing the advisory opinion of the customs office at the exit out of the Community;

    c) provision of services, including the transport and the ancillary services thereof, other than those provided in Article 144^1, which are directly connected with the export of goods;

    d) provision of services, including the transport and the ancillary services thereof, other than those provided in Article 141, if they are directly connected with the import of goods and their value is included in the taxable amount of imported goods, according to Article 139;

    e) provisions of services in Romania for the purchased or imported movable property, in view of processing in Romania and that are subsequently transported outside the Community by the provider of services or by the client, if he is not established in Romania, or by another person on behalf of any of these;

    f) intra-Community transport of goods, from and to the islands making up the autonomous regions of the Azores and Madeira, as well as ancillary services;

    g) international passenger transport;

    h) in case of sea-going vessels used for the international transport of persons and/or goods, for fishing or other economic activity, or for salvage or assistance at sea, the following operations:

    1. the supply, modification, repair, maintenance, chartering and hiring of the sea-going vessels, as well as the supply, hiring, rental, repair and maintenance of equipment built-in or used therein, including fishing equipment;

    2. the supply of fuels and provisions intended to be used on vessels, but including for warships subject to the Combined Nomenclature (CN) code 8906 10 00, leaving the country and heading towards foreign ports for berthing, except for provisions in case of ships used for coast fishing;

    3. the supply of services, other than those referred to in point 1, provided to meet the direct needs of the sea-going vessels and/or of their cargoes;

    i) in case of aircraft used by airlines operating for international transport of persons and/or goods for reward, the following operations:

    1. the supply, modification, repair, maintenance, chartering and hiring of aircraft and the supply, hiring, repair and maintenance of equipment incorporated or used therein;

    2. the supply of goods for the fuelling and provisioning of aircraft;

    3. provision of services other than those referred to in point 1 or in Article 144^1, provided to meet the direct needs of the aircrafts and/or for their cargo;

    j) supplies of goods and provision of services for the benefit of diplomatic missions and consular offices, their personnel, as well as foreign citizens having diplomatic or consular status in Romania, under conditions of reciprocity;

    k) supplies of goods and provision of services for the benefit of international organisations recognised as such by the public authorities from Romania, as well as to their members, within the limits and in accordance with the conditions provided in the conventions establishing such organisations or by headquarters agreements;

    l) supplies of goods not transported outside Romania and/or provision of services in Romania destined to the armed forces of foreign states which are members of NATO for official use or to the civilian personnel accompanying the armed forces or for the provisioning of their canteens and cafeterias, if the forces take part in the common defence effort;

    m) supplies of goods or provision of services in another Member State than Romania, for the purpose of being used by the armed forces of any Member State of NATO, other than the state of destination, or by the civilian personnel accompanying the armed forces or for the provisioning of their canteens and cafeterias, if the forces take part in the common defence effort; supplies of goods or provision of services to the armed forces of the Great Britain and Northern Ireland established in Cyprus Island, according to the Treaty establishing the Republic of Cyprus of 16 August 1960, intended for being used by the armed forces or by the civilian personnel accompanying them or for the supply of their canteens and cafeterias;

    n) supplies of gold to the National Bank of Romania;

    o) supplies of goods to the recognised bodies that transport or dispatch such goods outside the Community, as part of humanitarian, charity or instruction activities; the exemption shall be granted by refund of tax, according to a procedure provided by an order of the minister of public finance;

    (2) The following shall also be exempt from tax:

    a) the intra-Community supply of goods by a person that communicates to the supplier a valid registration code for VAT purposes, issued by the tax authorities from another Member State, except for:

    1. the intra-Community supply by a small undertaking, other than the intra-Community supplies of new means of transport;

    2. the intra-Community supply subject to the special arrangements of second-hand goods, works of art, collectors' items or antiques, within the meaning of Article 152^2;

    b) the intra-Community supply of new means of transport by a purchaser that communicates to the supplier a valid registration code for VAT purposes;

    c) the intra-Community supply of excisable products by a taxable person or by a non-taxable person that does not communicate to the supplier a valid registration code for VAT purposes, in case the transport of goods is carried out according to Article 7 (4) or (5) or Article 16 of Council Directive 92/12/EEC of 25 February 1992 on the general arrangements for products subject to excise duty and on the security, movement and monitoring of such products, published in the Official Journal of the European Communities (JOCE) No L 76 of 23 March 1992, as subsequently amended and supplemented, with the exception of:

    1. the intra-Community supply by a small undertaking;

    2. the intra-Community supply subject to the special arrangements of second-hand goods, works of art, collectors' items or antiques, within the meaning of Article 152^2;

    d) intra-Community supply of goods, provided in Article 128 (10) that would benefit from the exemption provided in letter a) if they would be effected by another taxable person, except for intra-Community supply subject to the special arrangements of second-hand goods, works of art, collectors' items or antiques, within the meaning of Article 152^2.

    (3) The documents necessary to justify the exemption from value-added tax for the operations provided in paragraphs (1) and (2) and, as the case may be, the procedure and conditions which must be satisfied for the application of exemptions from value-added tax shall be established, where necessary, by order of the minister of public finance.

ART. 144 - Special exemptions related to the international traffic of goods

    (1) The following shall be exempt from the value-added tax:

    a) supply of goods intended to:

    1. be placed under a temporary admission customs arrangement, with full relief from the payment of import rights;

    2. be produced to the customs authorities with a view to clearance and, where applicable, placed in temporary storage;

    3. be placed in a free zone or in a free warehouse;

    4. be placed under customs warehousing arrangements;

    5. be placed under customs inward processing arrangements, with suspension from the payment of the import rights;

    6. be placed under external transit customs procedure;

    7. be admitted into territorial waters:

    - in order to be incorporated into drilling or production platforms, for purposes of the construction, repair, maintenance, alteration or fitting-out of such platforms, or to link such drilling or production platforms to the mainland;

    - for the fuelling and provisioning of drilling or production platforms;

    8. be placed under warehousing arrangements for VAT, defined as follows:

    - for excisable goods, any place from Romania, defined as fiscal warehouse, for the purpose of Article 4 (b) of the Council Directive 92/12/EEC, as subsequently amended and supplemented;

    - for goods, other than excisable goods a place from Romania and defined by the norms;

    b) supplies of goods carried out in the places listed in letter a), as well as the supply of goods still subject to one of the arrangements or situations specified under a);

    c) supplies of services relating to the supplies referred to in letter a) or carried out in the places listed in letter a), for the goods still subject to one of the arrangements or situations specified under a);

    d) supplies of goods still subject to internal transit customs procedure, as well as supplies of services relating to such supplies, others than those provided in Article 144^1.

    e) the import of goods intended to be placed under a VAT warehouse procedure.

    (2) The documents necessary to justify the exemption from value-added tax for the operations provided in paragraph (1) and, as the case may be, the procedure and conditions which must be satisfied for the application of the exemptions from value-added tax shall be established, where necessary, by order of the minister of public finance.

ART. 144^1 - Exemptions for intermediaries

    The services provided by the intermediaries acting in the name and on behalf of another person, in case such services are provided in connection to the exempt operations provided in Article 143 and 144 shall be exempt from tax, except for the operations provided in Article 143 (1) f) and (2), or in connection to the operations carried out outside the Community.

CHAPTER X - Regime of deductions

ART. 145 - Scope of right of deduction

    (1) The right of deduction shall arise at the moment at the time when tax becomes chargeable.

    (2) If the acquisitions are intended for the use to the benefit of the following operations, any taxable person shall have the right to deduct:

    a) taxable operations;

    b) operations resulting from economic activities for which the place of supply/provision is considered to be abroad, if the value-added tax was deductible, had the operations been carried out Romania;

    c) operations which are exempt from tax, according to Article 143, 144 and 144^1;

    d) operations which are exempt from tax, according to Article 141 (2) a) points 1 - 5 and b), when the customer is established outside the Community or when these operations are directly linked with goods intended to be exported to a country outside the Community, as well as in case of operations carried out by intermediaries acting on behalf and in the account of another person, when they interfere with such operations;

    e) operations provided in Article 128 (7) and Article 129 (7), if the tax had been applied to such transfer.

    (3) Unless contrary to the provisions of paragraph (2), the taxable person shall be entitled to the tax deduction also for the cases provided in Article 128 (8) and in Article 129 (5).

    (4) Under the terms established by norms, the right of deduction of the tax for the acquisitions carried out by the taxable persons before its registration for VAT purposes, according to Article 153.

    (5) The following shall not be deducted:

    a) the tax related to the amounts paid on behalf and in the account of the client and which is subsequently refunded to him, as well as the tax related to the amounts paid on behalf and in the account of another person, not included in the taxable amount of the supplies/provisions carried out according to Article 137 (3) e);

    b) the tax owed or paid for the acquisitions of alcoholic beverages and tobacco products, except for the cases when such beverages are destined for re-sale or for the use of the provisions of services.

ART. 145^1 - Special limitations of the right to deduction

    In case of motorised road vehicles solely intended for passenger road transport, with a maximum authorised weight not exceeding 3 500 kg and which do not have more than 9 passenger seats, including the driver's seat, the value-added tax related to the purchases of such vehicles or the tax related to the purchase of fuel intended for use for vehicles having the same characteristics, which are owned or used by the taxable person, except for the situation when the vehicles are classified into one of the following categories:

    a) vehicles used solely for: intervention, repairs, safeguard and protection, courier services, transport of employees to and from the place of carrying on the activity, as well as vehicles especially adjusted to be used as television camera truck, vehicles used by the salesmen and by employment recruitment agents;

    b) vehicles used for paid passenger transport, including for taxi driver's activity;

    c) vehicles used for the service provision against payment, including for rental to other parties, training activity within the driver's courses, transfer of the right of use within a financial or operational lease contract;

    d) vehicles used for commercial purposes, or for the purpose of resale.

    (2) For the purpose of paragraph (1), vehicle purchase means the purchase of a vehicle from Romania, the import or intra-Community acquisition of such vehicle.

    (3) The provisions of paragraphs (1) and (2) shall not apply to the advance payments made before 1 May 2009 for the total or partial value of the motorised road vehicles, if their supply occurs after 1 May 2009 inclusive.

    (4) The provisions of this article shall apply until 31 December 2010 inclusively.

    (5) In case of vehicles excepted according to paragraph (1) the general deduction rules established in Article 145 and Article 146 - 147^1 shall apply.

ART. 146 - Conditions for the exercise of the right to deduction

    (1) To exercise the right to deduction of tax, the taxable person must meet the following conditions:

    a) hold an invoice that includes the information provided in Article 155 (5), for the tax payable or paid, related to the goods supplied or to be supplied or to the services provided or to be provided to his benefit;

    b) for the tax related to the goods supplied or to be supplied or to the services provided or to be provided to his benefit, but for which the taxable person is liable to pay tax, according to Article 150 (2) - (6), must have an invoice in compliance with the provisions of Article 155 (5) or the documents provided in Article 155^1 (1);

    c) for tax paid for the imports of goods, other than those provided in letter d), to have a customs import declaration or a survey report issued by the customs authorities that should mention the taxable person as being the importer of goods for value-added tax purposes, as well as documents which confirm the payment of the value-added tax by the importer or by another person in its account. The importers which hold a unique authorisation for simplified customs procedures issued by another Member State or which makes imports of goods in Romania from a VAT purposes, for which they do not have the obligation to submit import customs declarations, must hold an import declaration for VAT and excise duties;

    d) for tax payable for the imports of goods carried out according to Article 157 (4) and (5) to have a customs import declaration or a survey report issued by the customs authorities that should mention the taxable person as being the importer of goods for value-added tax purposes, as well as the amount of the payable tax. Likewise, the taxable person must register the tax as collected tax in the tax return related to the tax period when the tax becomes chargeable;

    e) for the tax related to an intra-Community acquisition of goods must have an invoice or document provided in Article 155^1 (1)

    f) for the tax related to an operation assimilated to an intra-Community acquisition of goods, provided in Article 130^1 (2) a), to hold the document provided in Article 155 (4), issued in the Member State from where the goods have been transported and dispatched, or the document provided in Article 155^1 (1).

    (2) The norms for the application of the present title shall specify the situations when the documents or obligations, others than those provided in paragraph (1) shall be produced or shall be met to justify the right of deduction of tax.

ART. 147 - Deduction of tax for taxable persons with a mixed regime and partly taxable person

    (1) Any taxable person which carries out or which is going to carry out both operations which give the right of deduction and operations which do not give the right of deduction shall be hereinafter called taxable person with a mixed regime. The person carrying out both operations for which it is not a taxable person, in compliance with the provisions of Article 127, and operations for which it is a taxable person shall be hereinafter referred to as partly taxable person.

    (2) The right of deduction of the deductible tax related to acquisitions made by a taxable person with a mixed regime shall be determined according to the present article. The partly taxable person shall not have a right of deduction for the acquisitions destined to the activities for which it does not have the quality of taxable person. If the partly taxable person carries on activities as taxable person, that result both in operations with a right of deduction and operations without a right of deduction, it shall be considered as mixed taxable person for such activities and it shall apply the provisions of this article. Under the conditions set by the norms, the partly taxable person may request that a special pro rata be applied in case it can not keep separate records for the activities carried out as taxable person and for the activity for which it is not a taxable person.

    (3) The acquisitions which are intended exclusively to carry out operations which give the right of deduction, including investments which are intended to carry out such operations, shall be written down in a separate column in the purchase journal for such operations, and the deductible tax related thereto shall be entirely deducted.

    (4) The acquisitions which are intended exclusively to carry out operations which do not give the right of deduction, as well as of investments which are intended to carry out such operations, shall be written down in the purchase journal for such operations, and the deductible tax related thereto shall not be deducted.

    (5) The acquisitions whose destination is unknown, respectively if they are used to carry out operations which give the right of deduction or operations which do not give the right of deduction, or for which it is not possible to determine the proportion of their current or future use for operations which give the right of deduction and operations which do not give the right of deduction, shall be recorded in a separate column in a purchase journal and the tax related to such acquisitions shall be deducted based on pro rata.

    (6) The pro rata provided in paragraph (5) shall be determined as ratio between:

    a) the total amount, less the tax, but including the subsidies directly linked to the price, of the operations consisting in supply of goods and provisions of service that enable the exercise of the right to deduction, as the numerator;

    b) the total amount, less the tax, of the operations provided in letter a) and of operations consisting in supply of goods and provisions of service that do not enable the exercise of the right to deduction, as the denominator. The amounts received from the state budget or the local budgets, granted for the purpose of financing the operations exempt without a right of deduction or the operations that are not within the scope of tax shall be included.

    (7) The following shall be excluded from the calculation of pro-rata:

    a) the value of each supply of capital goods that were used by the taxable person in its economic activity;

    b) the value of any self-supply of goods or self-provisions of services carried out by the taxable person and provided in Article 128 (4) and in Article 129 (4), as well as of the transfer provided in Article 128 (10);

    c) the value of the operations provided in Article 141 (2) a) and b), as well as of the real estate transactions, other than those provided in letter a), as far as they are ancillary to the main activity.

    (8) The following pro rata shall be determined yearly, and its calculation includes all operations provided in paragraph (6), for which tax become chargeable during that calendar year. The final pro rata shall be determined as a percentage and it shall be rounded off up to the immediately following figure of units. To the tax return provided in Article 156^2, where the adjustment provided in paragraph (12) was carried out, a document showing the method of calculation of the final pro-rata shall be enclosed.

    (9) The pro rata temporarily applicable for a year shall be either the final pro rata, provided in paragraph (8), determined for the previous year or the estimated pro rata based on operations forecast to be carried out during the current year, in case of taxable persons for whom the weight of operations with right of deduction in the total operations is changed during the current year as compared to the previous year. The taxable persons must communicate the temporary pro rata applied during such year, as well as the manner of determining such pro rata, to the competent tax body at the beginning of each fiscal year, not later than 25 January. In case of a newly-registered taxable person, the temporarily applicable pro rata is the pro rata estimated based on the operations forecast to be carried out during the current calendar year, that must be communicated at the latest by the date when the taxable person must submit its first tax return, provided in Article 156^2.

    (10) The tax to be deducted in a calendar year shall be determined temporarily by multiplying the value of the deductible provided in paragraph (5) for each fiscal period of such calendar year with the temporary pro rata provided in paragraph (9), determined for such year.

    (11) The tax to be deducted during a calendar year shall be finally calculated by multiplying the total amount of the deductible tax during such calendar year, provided in paragraph (5) with the final pro rata provided in paragraph (8), determined for that year.

    (12) At the end of the year, the taxable person with mixed regime must adjust the temporarily deducted tax as follows:

    a) from the tax to be deducted finally determined, according to paragraph (11), the tax deducted during one year temporarily determined, according to paragraph (10);

    b) the result of the difference in letter a), in plus or in minus as applicable, shall be registered at the regularisations column in the tax return, provided in Article 156^2, related to the last tax period of the year, or in the tax return related to the last tax period of the taxable person, in case its registration is cancelled.

    (13) As regards the tax to be deducted related to the capital goods, defined according to Article 149 (1) used for the operations provided in paragraph (5):

    a) the first deduction shall be determined based on the temporary pro rata provided in paragraph (9), for the year when the right of deduction arises. At the end of the year, the deduction shall be adjusted according to paragraph (12), based on the final pro rata provided in paragraph (8). This first adjustment shall be carried out on the total value of the initially deducted tax;

    b) the subsequent adjustments shall be considered for one fifth, for movable property, or one twentieth for immovable property, as follows:

    1. the initial deductible tax shall be divided to 5 or to 20;

    2. the result of the calculation made according to point 1 shall be multiplied by the final pro rata provided in paragraph (8), related to each of the next 4 or 19 years;

    3. the initially deducted tax of the first year, according to the final pro rata shall be divided to 5 or to 20;

    4. the results of the calculations carried out to point 2 and 3 shall be compared, and the difference in plus or in minus shall be the adjustment to be carried out, that are written among the regularisation of tax return provided in Article 156^2, related to the last tax period of the year.

    (14) In special cases, when the pro rata calculated according to provisions of the present article do not ensure the correct determination of the tax to be deducted, the Ministry of Public Finance, by the specialised directorate, may, at the justified request of the taxable persons:

    a) approve the application of a special pro rata. If the approval was granted during the year, the taxable persons shall be obliged to re-calculate the deducted value-added tax as of the beginning of the year based on the special pro rata approved. The taxable person with mixed regime may renounce the application of the special pro rata only at the beginning of a calendar year and shall be obliged to inform the competent tax bodies by 25 January inclusive of that year;

    b) authorise the taxable person to set a special pro rata for each sector of its economic activity, provided that he keeps separate books for each sector.

    (15) Based on the proposals made by the competent tax body, the Ministry of Public Finance, by its specialised directorate, may impose on the taxable person certain criteria for the exercise of the right of deduction for its future operations, namely:

    a) to apply a special pro rata;

    b) to apply a special pro rata for each sector of its economic activity;

    c) to exercise the right of deduction only based on a direct assignment, in compliance with the provisions of paragraphs (3) and (4) for all operations or only for a part of the operations;

    d) to keep separate books for each sector of its economic activity.

    (16) The provisions of paragraph (6) - (13) shall also apply for the special pro rata provided in paragraph (14) and (15). By exception from the provisions of paragraph (6) for the calculation of the special pro rata the following shall be considered:

    a) the operations specified in the decision of the Ministry of Public Finance, for the cases provided in paragraph (14) a) or (15) b);

    b) the operations carried out for each sector of activity, for the cases provided in paragraph (14) a) or paragraph (15) b).

ART. 147^1 - Right of deduction exercised through tax return

    (1) Any taxable person registered for VAT purposes, according to Article 153, shall be entitled to subtract from the value-added of the collected tax, for the tax period, the total value of the tax for which, during the same period, the right of deduction arose and may be exercised, according to Article 145 - 147.

    (2) In case the conditions and formalities for the exercise of the right of deduction during the tax period of declaration are not met or in case the documents justifying the tax provided in Article 146 were not received, the taxable person may exercise the right of deduction by means of the tax return of the tax period when these conditions and formalities are fulfilled or by a subsequent tax return, but for not more than 5 consecutive years, starting with 1 January of the year following the one when the right of deduction arose.

    (3) The norms shall state the necessary condition for applying the provisions of paragraph (2), for the situation when the right of deduction is exercised more than 3 consecutive years after the year the right of deduction arose.

    (4) The right of deduction shall be exercised although there is no collected tax or the tax to be deducted is higher than the one collected for the tax period provided in paragraphs (1) and (2).

ART. 147^2 - Tax refund to the taxable persons not registered for VAT purposes in Romania and VAT refund by other Member States to taxable persons established in Romania

    (1) Under the terms established by the norms:

    a) the taxable person not established in Romania, which is established in another Member State, not registered and that is not bound to register for VAT purposes in Romania, may benefit by the refund of the paid value added tax for imports and goods/services purchases carried out in Romania;

    b) the taxable person not registered that is not bound to register for VAT purposes in Romania, not established in the Community, may request the refund of the paid tax for imports and goods/services purchases carried out in Romania if, in compliance with the laws of the country where the taxable person is established, the taxable person established in Romania would have the same right to a refund as regards the value-added tax or other similar taxes/duties applied in such country;

    c) the taxable person not registered and that is not bound to register for VAT purposes but that makes in Romania an exempt intra-Community supply of new means of transport may request the refund of the tax paid for the acquisition of such new means of transport he made in Romania. The refund may not exceed the duty that would apply if the supply by such person of such new means of transport would be a taxable supply. The right to deduction arises and may be exercised only at the time of the intra-Community supply of new means of transport;

    d) the taxable person established in Romania, not registered and that is not bound to register for VAT purposes may request the refund of the tax paid in relation to the operations provided in Article 145 (2) d) or in other situations provided by the norms.

    (2) The taxable person established in Romania may benefit by the refund of the value-added tax paid for imports and goods/services purchases carried out in another Member State, under the terms provided in the norms.

    (3) In case it is established that the refund provided in paragraph (1) a) are obtained by fraud or by other incorrect methods, the competent tax bodies shall recover the amounts paid erroneously and other related penalties and interests, without being contrary to the provisions concerning the mutual assistance for VAT recovery.

    (4) In case an interest or an administrative penalty was imposed, but not paid, the competent fiscal bodies shall suspend any other additional refund to such taxable person until the payable amounts are paid off.

ART. 147^3 - Tax refund to taxable persons registered for VAT purposes, according to Article 153

    (1) In case the tax related to the acquisitions made by a taxable person registered for VAT purposes, according to Article 153, deductible in a tax period, is higher than the tax collected for taxable operations, it results a surplus during the reporting period, hereinafter referred to as negative amount of tax.

    (2) After determining the tax to be paid or the negative amount of tax for the operations in the fiscal reporting period, the taxable persons must make the regularisations provided in this article, by the tax return provided in Article 156^2.

    (3) The cumulated negative amount of tax shall be determined by adding to the negative amount of tax, resulted in the fiscal reporting period, of the balance of the negative amount of tax, carried forward from the tax return of the previous tax period, if it was not requested to be refunded.

    (4) The cumulated payable tax shall be determined in the tax period of reporting by adding to the payable tax in the fiscal reporting period the amounts not paid to the state budget, by the date of submission of the tax return provided in Article 156^2, of the balance of the payable tax of the previous tax period.

    (5) By the tax return provided in Article 156^2, the taxable persons must determine the differences among the amounts provided in paragraphs (2) and (3), that represent the tax regularisations and establishing the balance of the payable tax or of the balance of the negative amount of tax. If the cumulated payable tax is higher than the cumulated negative amount of tax, it results a balance of the payable tax in the tax period of reporting. If the cumulated negative amount of tax is higher than the cumulated payable tax, it results a balance of the negative amount of tax in the tax period of reporting.

    (6) The taxable persons, registered according to Article 153, may request the refund of the balance of the negative amount of tax from the tax period of reporting, by crossing the corresponding box in the tax return of the tax period of reporting, the tax return also representing a refund request, or they may carry forward the balance of the negative amount in the tax return of the next tax period. If the taxable person requests the refund of the balance of the negative amount, it shall not be carried forward of the next tax period. The refund of the balance of the negative amount of tax in the tax period of reporting, smaller than ROL 5 000 inclusive, may not be requested, this being mandatorily carried forward in the tax return of the next tax period.

    (7) In case of taxable persons absorbed by another taxable person, the balance of the negative amount of the value-added tax for which no refund was requested shall be taken over in the tax return of the person that took over the activity.

    (8) In case two or more taxable persons merge, the taxable person that takes over the activities of the others shall also take over the balance of the payable tax to the state budget, as well as the balance of the negative amount of tax, for which no refund was requested from the tax return of the persons having undergone liquidation on the occasion of merger.

    (9) The refund of the balance of the negative amount of tax shall be carried out by the tax bodies, under the terms and conditions and according to the procedures established by the norms in force.

    (10) For the operations exempt from tax with right of deduction, provided in Article 143 (1) b), j), k) l) and o), the persons not registered for VAT purposes, according to Article 153, may benefit from tax refund, according to the procedure provided by order of the minister of public finance.

ART. 148 - Adjustments of deductible tax in case of acquisitions of services and goods, others than capital goods

    The initial deduction shall be adjusted in the following instances, in case the rules regarding the self-supply or self-provision do not apply:

    a) where that deduction was higher or lower than that to which the taxable person was entitled;

    b) if there are changes in the items considered in the determination of the deductible amount, occurred after the submission of the tax return, including in the cases provided in Article 138;

    c) the taxable person loses its right of deduction of tax for movable property not supplied and services not used at the time of losing the right of deduction.

ART. 149 - Adjustment of deductible tax in case of capital goods

    (1) Within the meaning of this article:

    a) the capital goods represents all fixed tangible assets, defined in Article 125^1 (1) 3, whose normal operation period equals or is higher than 5 years, as well as the construction operations, transformation or modernisation of the immovable assets, excluding the repairs or the upkeep works for these assets, even provided that such operations are carried out by the beneficiary of a rental, lease contract or any other contract whereby the fixed tangible assets are made available to another person;

    b) the goods that are subject to rental, leasing, concession or any other method to make them available to a person shall be considered capital goods belonging to the person letting them, or making them available to another person;

    c) the packages may be used several times or they are not deemed capital goods;

    d) the deductible tax related to the capital goods is the tax paid or payable, related to each operation as regards the acquisition, manufacturing, construction, transformation or modernisation of such goods, excluding the tax paid or payable, related to the repair or upkeep of such goods or the one related to the acquisition of spare parts destined to the repair or upkeep of the capital goods.

    (2) The deductible tax related to the capital goods, provided that the rules on self-supply or self-provision do not apply, shall be adjusted, in the situations provided in paragraph (4) a) - d):

    a) for a period of 5 years, for the capital goods acquired or manufactured, other than those provided in letter b);

    b) for a period of 20 years, for the construction or acquisition of an immovable asset, as well as for the transformation or change of an immovable asset, if the value of each transformation or modernisation is at least 20% of the total value of the immovable asset thus transformed or modernised.

    (3) The adjustment period begins:

    a) as of 1 January of the year when they were acquired or manufactured, for the capital goods provided in paragraph (2) a), acquired or manufactured, as of the accession date;

    b) as of 1 January of the year when the goods are first used, for the capital goods provided in paragraph (2) b), that were built, and it shall be made for the entire amount of the deductible tax related to the capital good, including for the tax paid or payable before the accession date, if the year of the first use coincides with the year of accession or a year subsequent to accession;

    c) as of 1 January of the year when the goods have been acquired, for the capital goods provided in paragraph (2) b), that are acquired, and it shall be made for the entire amount of the deductible tax related to the capital good, including for the tax paid or payable before the accession date, if the legal formalities for the transfer of the property title from the sell to the acquirer were fulfilled in the year of accession or a year subsequent to accession;

    d) as of 1 January of the year when the goods are first used after transformation or modernisation, for the conveyance or modernisation of the capital goods provided in paragraph (2) b), that amount at least to 20% of the total value of an immovable asset transformed or modernised, and it shall be made for the entire amount of the deductible tax related to the transformation or modernisation, including for the amount of the deductible tax related to such transformation or modernisation paid or owed before the accession date, if the year of the first use coincides with the year of accession or a year subsequent to accession.

    (4) The adjustment of the deductible tax provided in paragraph (1) d) shall be carried out:

    a) in case the capital goods is used by the taxable person:

    1. in full or in part, for other purposes than the economic activities;

    2. for carrying out operations that do not give the right of tax deduction;

    3. for carrying out operations that give the right of tax deduction in a different manner than the initial deduction;

    b) in the cases where there are changes of the elements used for calculating the deducted tax;

    c) in case a capital good that had a full or partly limited right of deduction is subject to any operation for which the tax is deductible. In case of a supply of goods, the additional value of the tax to be deducted shall be limited to the value of the collected tax for the supply of such good;

    d) in case the capital good does no longer exist, except for the cases where it is proved that such capital good was subject to a supply or a self-supply for which the tax is deductible;

    e) in the situations provided in Article 138.

    (5) The deductible tax shall be adjusted as follows:

    a) for the cases provided in paragraph (4) a), the adjustment shall be carried out within the adjustment period provided in paragraph (2). The adjustment shall be made during the fiscal period when the event generating the adjustment occurs and shall be carried out for the entire period of adjustment left, including the year when a change in destination of use occurs. The norms shall establish transitory rules in case that the adjustment provided in paragraph (4) a) was carried out for one fifth or, as applicable, the twentieth part of the initially deducted tax, for the year 2007;

    b) for the case provided in paragraph (4) b), the adjustment shall be carried out by the taxable persons which have applied a deduction pro rata for the capital good. The adjustment represents one fifth or, as applicable, the twentieth part of the initially deducted tax, and it shall be carried out during the last fiscal period of the calendar year, for each year when changes of the items of the deducted tax occur within the adjustment period provided in paragraph (2);

    c) for the case provided in paragraph (4) c) and d), the adjustment shall be made during the fiscal period when the event generating the adjustment occurs and shall be carried out for the entire period of adjustment left, including the year when the adjustment obligation occurs;

    d) for the cases provided in paragraph (4) e), the adjustment shall be carried out when the situations listed under Article 138 occur, according to the procedure provided in the norms.

    (5^1) If, during the adjustment period, events that will generate adjustment in favour or the taxable person or in favour of the state occur, the adjustments provided in paragraph (5) a) and c) shall be carried out for the same capital good successively within the adjustment period or whenever such events occur.

    (6) The taxable person must keep a record of the capital goods subject to adjustment of the deductible tax, that allows the control of the deductible tax and of the adjustments made. This record must be kept for a period that begins at the time when the tax related to the acquisition of the capital goods becomes chargeable and it ends after the expiry of the period when the adjustment of deduction may be request. Any other entries, documents and journals regarding the capital goods must be kept for the same period.

    (7) The provisions of this Article shall not apply in case the amount that would result after the adjustments is negligible, according to the provisions of the norms.

CHAPTER XI - Persons liable for payment for tax

ART. 150 - Person liable for payment for tax for taxable operations from Romania

    (1) The person liable to pay the tax, if it is owed in compliance with the provisions of this title, shall be the taxable person making taxable supply of goods or provisions of services, except for the cases where the beneficiary is liable to pay the tax according to paragraphs (2) - (6) and to Article 160;

    (2) The tax is payable by any taxable person, including by the non-taxable legal persons registered for VAT purposes according to Article 153 and 153^1, that is the beneficiary of the services provided in Article 133 (2) and which are provided by a taxable person that is not established in Romania or is not considered to be established for those provisions of services on the Romanian territory according to the provisions of Article 125^1 (2), although it is registered for VAT purposes in Romania, according to Article 153 (4) or (5).

    (3) The tax is payable by any taxable person, to whom natural gas or electric energy is supplied under the terms provided in Article 132 (1) e) or f), if these supplies are carried out by a taxable person that is not established in Romania or is not considered to be established for the supply of these goods on the Romanian territory according to the provisions of Article 125^1 (2), although it is registered for VAT purposes in Romania, according to Article 153 (4) or (5).

    (4) The tax is payable by the taxable person or the non-taxable legal person, registered for VAT purposes according to Article 153 or 153^1, that is the beneficiary of a subsequent supply carried out within a triangular operation, under the following terms:

    1. the reselling buyer of the goods must not be established in Romania, must be registered for VAT purposes in another Member State and must have carried out an intra-Community acquisition of such goods in Romania that is not taxable according to Article 126 (8) b); and

    2. the goods related to the intra-Community acquisitions, provided in point 1, must have been transported by the supplier or by the reselling buyer or by other person, in the account of the supplier or of the reselling buyer from a Member State, other than the state in which the reselling buyer is registered for VAT purposes, directly to the beneficiary of the supply; and

    3. the reselling buyer must designate the beneficiary of the subsequent supply as person liable for the payment of tax for such supply.

    (5) The tax is payable by the person that is the cause of the goods being taken out of the arrangements and situations provided in Article 144 (1) a) and d);

    (6) In other situations than those provided in paragraphs (2) - (5), in case the supply of goods/provision of services is carried out by a taxable person not established in Romania and not considered to be established for the supply of these goods/provision of services on the Romanian territory according to the provisions of Article 125^1 (2) and that is not registered in Romania according to Article 153, the person obliged to pay the tax shall be the taxable person and the non-taxable legal person, established or not established in Romania, but not registered through a fiscal representative, that is the beneficiary of certain supply of goods/provisions of services taking place in Romania, according to Article 132 or 133.

    (7) By derogation from the provisions of paragraph (1):

    a) when the person liable for payment of tax, according to paragraph (1), is a taxable person established within the Community, but not in Romania, such person may, under the terms of the norms, appoint a tax representative as person liable for payment of tax;

    b) when the person liable for payment of tax, according to paragraph (1), is a taxable person not established within the Community, such person must, under the terms of the norms, appoint a tax representative as person liable for payment of tax.

ART. 151 - Person liable for payment of tax for intra-Community acquisitions

    (1) The person making a taxable intra-Community acquisition of goods, according to this title, shall be liable to pay the tax.

    (2) When the person bound to pay the tax for the intra-Community acquisition, according to paragraph (1) is:

    a) a taxable person established within the Community, but not in Romania, such person may, under the terms established by norms, to appoint a fiscal representative as person bound to pay the tax;

    b) a taxable person not established within the Community, such person is bound, under the terms established by norms, to appoint a fiscal representative as person bound to pay the tax.

ART. 151^1 - Person liable for payment of tax for import of goods

    The payment of tax for the import of goods subject to taxation, according to the title, shall be the liability of the importer.

ART. 151^2 - Individual and joint liability for the payment of tax

    (1) The beneficiary shall be held individually and jointly liable for the payment of tax, in case the person liable for the payment of tax is the supplier or the provider, according to Article 150 (1) a), if the invoice provided in Article 155 (5):

    a) is not issued;

    b) includes incorrect/incomplete data as regards one of the following information: name, address, registration code for VAT purposes of the contracting parties, name or quantity of the goods supplied or services provided, elements necessary for calculating the taxable amount;

    c) does not state the value of tax or it states an incorrect value.

    (2) By way of derogation from the provisions of paragraph (1), if the beneficiary makes proof of the payment of tax by the person liable to pay it, he shall no longer be held individually and jointly liable for the payment of tax.

    (3) The supplier or the provider shall be held individually and jointly liable for the payment of tax, in case the person liable for the payment of tax is the beneficiary, according to Article 150 (2) - (4) and (6), if the invoice provided in Article 155 (5) or the self-invoice provided in Article 155^1 (1):

    a) is not issued;

    b) includes incorrect/incomplete data as regards one of the following information: name, address, registration code for VAT purposes of the contracting parties, name or quantity of the goods supplied or services provided, elements necessary for calculating the taxable amount.

    (4) The supplier shall be held individually and jointly liable for the payment of tax, in case the person liable for the payment of tax for an intra-Community acquisition of goods is the beneficiary, according to Article 151, if the invoice provided in Article 155 (5) or the self-invoice provided in Article 155^1 (1):

    a) is not issued;

    b) includes incorrect/incomplete data as regards one of the following information: name, address, registration code for VAT purposes of the contracting parties, name or quantity of the goods supplied or services provided, elements necessary for calculating the taxable amount.

    (5) The person providing representation for the importer, the person that submits the import customs declaration or the VAT import declaration and the owner of goods shall be held individually and jointly liable for the payment of tax, together with the importer provided in Article 151^1.

    (6) In order to apply the warehousing procedure of value-added tax provided in Article 144 (1) a) point 8, the warehouse keeper and the carrier of goods from the warehouse or the person in charge with the transport shall be held individually and jointly liable for the payment of tax, together with the person liable to pay it, according to Article 150 (1) (5), (6) and Article 151^1.

    (7) The person that designates another person as tax representative, according to Article 150 (7) and/or Article 151 (2), shall be held individually and jointly liable for the payment of tax, together with its tax representative.

CHAPTER XII - Special schemes

ART. 152 - Special exemption scheme for small undertakings

    (1) The taxable person established in Romania, according to Article 125^1 (2) a) whose annual turnover, declared or realised, is lower than the EUR 35 000 threshold, the ROL equivalent of which is established at the exchange rate communicated by the National Bank of Romania on the date of accession and it shall be rounded to the next thousand, may request the tax exemption, hereinafter called special exemption scheme, for the operations provided in Article 126 (1), except for the intra-Community supplies of new means of transport, exempt according to Article 143 (2) b).

    (2) The turnover which serves as reference for the application of paragraph (1) shall be the total amount of the supply of goods and provisions of services carried out by the taxable person within a calendar year that would be taxable if they were not carried out by a small undertaking, the operations resulted from the economic activities for which the place of supply/provision shall be deemed as being abroad, if the tax would be deductible, in case such operations would have been performed in Romania according to Article 145 (2) b), exempt operations with right of deduction and those exempt operations without right of deduction, provided in Article 141 (2) a), b), e) and f), if they are not ancillary to the main business, except for the following:

    a) the supplies of tangible or intangible fixed assets, as defined in Article 125^1 (1) point 3, carried out by a taxable person;

    b) intra-Community supplies of new means of transport, exempt according to Article 143 (2) b).

    (3) The taxable persons that meet the conditions provided in paragraph (1) and are eligible for special scheme of exemption from tax may opt at any time for applying a normal value-added tax arrangement.

    (4) The newly established taxable persons may benefit from the application of the special exemption scheme, if they declare that they will obtain an estimated annual turnover, according to paragraph (2), below exemption threshold and they do not elect the application of the normal value-added tax arrangement, according to paragraph (3).

    (5) Within the meaning of paragraph (4), for the taxable person that starts a business during a calendar year, the exemption threshold provided in paragraph (1) shall be determined proportionally to the period left from the setting up to the end of the year, and a month fraction shall be considered a full calendar month.

    (6) The taxable person which applies the special exemption scheme and whose turnover, provided in paragraph (2), is higher or equal to the exemption threshold during the calendar year, must request registration for VAT purposes, according to Article 153, within 10 days after the date of reaching or exceeding of the threshold. The date of reaching or exceeding of the threshold shall be the first day of the calendar month following the one when the threshold was reached or exceeded. The special exemption scheme shall apply until the date of registration for VAT purposes, according to Article 153. If the taxable person does not request or requests with a delay the registration, the competent tax bodies shall be entitled to establish obligations regarding the payable tax and its ancillaries, as of the date when it should have been registered for VAT purposes, according to Article 153.

    (7) After exceeding the exemption threshold or after exercising the option provided in paragraph (3), the taxable persons may apply once more the special exemption scheme, even if subsequently they obtain annual turnover lower than the exemption threshold.

    (8) The taxable persons applying the special exemption scheme:

    a) shall not be entitled to deduct tax in accordance with the provisions of Article 145 and 146;

    b) to show the tax on their invoices or on other documents;

    c) *** Repealed

    (9) The norms shall establish the registration rules and the adjustments to be carried out in case of changing the tax arrangement.

ART. 152^1 - Special scheme for travel agencies

    (1) For the purpose of applying this article, travel agency means any person that on his own name or as agent, intermediates, supplies information or undertakes to provide to the persons travelling individually or in groups, travel services, that include accommodation in hotels, guest houses, hostels, vacation chalets or other spaces used for accommodation, air, land or sea transport, organised trips and other tour services. Travel agency shall include tour operators.

    (2) In case a travel agency acts in its own name to the direct benefit of the traveller and it uses supplies of goods and provisions of services by other persons, all operations performed by the travel agency in respect of a journey shall be treated as a single service supplied by the travel agent to the traveller.

    (3) The single service provided in paragraph (2) has the place of provision in Romania, if the travel agent has established his business or has a fixed establishment in Romania and from here the travel agent has provided the services.

    (4) The taxable amount of the single service provided in paragraph (2) shall be the profit margin, excluding the tax, determined as the difference between the total amount to be paid by the traveller, exclusive of value-added tax, and the actual cost to the travel agent of supplies of goods and services provided for the direct benefit of the traveller where such supplies and provisions are carried out by other taxable persons.

    (5) If supplies of goods and provisions of services for the direct benefit of the traveller are performed the Community, the travel agent's single service shall be treated as a service provided by an intermediary and it is tax exempt. Where supplies of goods and provisions of services are performed for the direct benefit of the traveller both inside and outside the Community, only that part of the travel agent's single service relating to transactions outside the Community may be exempt from tax.

    (6) Notwithstanding the provisions of Article 145 (2), the travel agency shall not be eligible for deduction or refund of the tax invoiced by the taxable persons for the supplies of goods and provisions of services to the direct benefit of the traveller and used by the travel agency for the provision of the single service provided in paragraph (2).

    (7) The travel agency may also opt for the application of the normal tax arrangement for the transaction provided in paragraph (2), with the following exceptions, for which the special taxation is mandatory:

    a) when the traveller is a natural person;

    b) in case the travel services also include components for which the place of operation is deemed outside Romania.

    (8) The travel agency must keep, besides the records that must be kept according to this title, any other necessary records for establishing the tax owed according to this article.

    (9) The travel agencies shall not be entitled to write the tax separately on invoices or on other legal documents sent to the traveller, for single services treated with a special exempt arrangement".

    (10) When the travel agency carries out both operations subject to the normal taxation arrangement and operations subject to the special exempt, it must keep separate accounting records for each type of operation separately.

    (11) The special arrangement provided in this article shall not apply to the travelling agencies acting as intermediaries and for which the provisions of Article 137 (3) e) are applicable as regards the taxable amount.

ART. 152^2 - Special arrangements applicable to second-hand goods, works of art, collectors' items and antiques

    For the purposes of this Article:

    a) works of art shall mean:

    1. pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, manuscripts, photographic copies on sensitized paper and carbon copies obtained after the plans, drawings or texts listed above and hand decorated industrial items (CN tariff code 9701);

    2. original old or modern engravings, prints and lithographs, being impressions produced in limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed by him, but not including any mechanical or photomechanical process (CN tariff code 9702 00 00);

    3. original sculptures and statuary, in any material, provided that they are executed entirely by the artist; copies and supervised another artist than the original artist (CN tariff code 9703 00 00);

    4. tapestries (CN tariff code 5805 00 00) and wall textiles (CN code tariff 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than 8 copies of each;

    5. individual pieces of ceramics executed entirely by the artist and signed by him;

    6. enamelson copper, executed entirely by hand, limited to 8 numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmiths' and silversmiths' wares;

    7. photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included;

    b) collectors items shall mean:

    1. postage or revenue stamps, postmarks, first-day covers, pre-stamped stationary and the like, franked, or if unfranked not being of legal tender and not being intended for use as legal tender (CN tariff code 9704 00 00),

    2. collections and collectors' pieces of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaetological, ethnographic or numismatic interest (CN tariff code 9705 00 00);

    c) antiques shall mean the objects, others than the works of art and collectors items, which are more than 100 years old (CN tariff code 9706 00 00);

    d) second-hand goods shall mean tangible movable property that is suitable for further use as it is or after repair, other than works of art, collectors' items or antiques, precious stones and other goods provided in the norms;

    e) taxable dealer shall mean a taxable person who, in the course of his economic activity, purchases or imports with a view to resale, second-hand goods and/or works of art, collectors' items or antiques, whether that taxable person is acting for himself or on behalf of another person pursuant to a contract under which commission is payable on purchase or sale;

    f) organiser of a sale by public auction shall mean any taxable person who, in the course of his economic activity, offers goods for sale by public auction with a view to handing them over to the highest bidder;

    g) profit margin shall mean the difference between the selling price applied by the taxable dealer and the purchase price, where:

    1. selling price everything which constitutes the consideration obtained by the taxable dealer from the purchaser or from a third party, including subsidies directly linked to such transaction, taxes, payment obligations, levies and other charges, such as commission, packaging, transport and insurance costs charged by the taxable dealer to the purchaser except for price discounts;

    2. the purchase price shall mean everything which constitutes the consideration obtained, according to the definition of the selling price, from the taxable dealer by the supplier;

    h) special exempt shall mean special regulations provided by the present article for the taxation of the supplies of second-hand goods, works of art, collectors items and antiques to the profit margin quota.

    (2) The taxable dealer shall apply special arrangements for the supply of second-hand goods, works of art, collectors items and antiques, other than the works of art supplied by the authors or their successors in title, for which there is an obligation of tax collection, goods acquired by him within the Community, from one of the following suppliers:

    a) a non-taxable person;

    b) a taxable person, in so far as the supply of goods by that taxable person is exempt from tax in accordance with Article 141 (2) g);

    c) a small undertaking in so far as the acquisition involves capital assets;

    d) another taxable dealer, in so far as the supply of goods by that other taxable dealer was subject to value-added tax under the special exempt.

    (3) Under the terms of the norms, the taxable dealers shall entitled to opt for application of the special arrangements to supplies of:

    a) works of art, collectors' items or antiques which they have imported themselves;

    b) works of art acquired by a taxable dealer from their authors or from its successors in title, for which there is the obligation to collect the tax.

    (4) For supplies provided in paragraph (2) and (3), for which the option made in paragraph (3), the taxable amount shall be the profit margin, determined according to paragraph (1) g), the related tax excluded. For supplies of works of art, collectors' items or antiques which the taxable dealer has imported himself according to paragraph (3), the purchase price to be taken into account in calculating the profit margin shall be equal to the taxable amount on importation, determined in accordance with Article 139, plus the value-added tax due or paid on importation.

    (5) Where they are effected in the conditions laid down in Article 143 (1) a), b), h) - m) and o), the supplies of second-hand goods, works of art, collectors' item or antiques subject to the special arrangements shall be exempt from tax.

    (6) The taxable dealers shall not be entitled to deduct value-added tax due or paid in respect of goods provided in paragraphs (2) and (3), in so far as the supply of those goods by the taxable dealer is subject to the special arrangements for taxing the margin.

    (7) The taxable dealers may apply the normal taxation arrangement for any supply eligible for applying the special exempt, including for the supply of goods for which it may be exercised the option to apply the special arrangement provided in paragraph (3).

    (8) In case the taxable dealer applies the normal taxation arrangement for goods eligible for applying the special exempt provided in paragraph (3), the taxable dealer shall be entitled to deduct the value-added tax due or paid in respect of:

    a) works of art, collectors' items or antiques which he has imported himself;

    b) of works of art acquired from their creators or their successors in title.

    (9) This right provided in paragraph (8) to deduct shall arise at the time when the tax due for the supply in respect of which the taxable dealer opts for application of the normal value-added tax arrangements become chargeable.

    (10) The taxable persons shall not be entitled to deduct the tax due or paid for goods that have been, or are going to be acquired from the taxable dealer, in so far as the supply of such goods by the taxable dealer is subject to the special arrangements.

    (11) The special arrangements shall not apply to:

    a) the supplies carried out by the taxable dealer for the goods acquired inside the Community from the persons that benefited from tax exemption, according to Article 142 (1) a) and e) - g) and Article 143 (1) h) - m), upon purchase, intra-Community acquisition or import of such goods or that benefitted from the tax refund;

    b) intra-Community supply by a taxable dealer of new means of transports exempt from tax, according to Article 143 (2) b).

    (12) The taxable dealer shall not be entitled to indicate separately on the invoices which he issues to the clients the tax relating to supplies of goods which he makes subject to the special arrangements.

    (13) Under the terms of the norms, the taxable dealer that applies the special arrangements must meet the following obligations:

    a) to establish the tax collected within the special arrangement for each fiscal period during which it must submit the tax return, according to Article 156^1 and 156^2;

    b) to keep records of the operations to which the special arrangements apply.

    (14) Under the terms of the norms, the taxable dealer that makes both operations subject to the normal tax arrangement and to the special arrangements must meet the following obligations:

    a) to keep separate records of the operations subject to each of these arrangements;

    b) to establish the tax collected within the special arrangement for each fiscal period during which it must submit the tax return, according to Article 156^1 and 156^2.

    (15) The provisions of paragraph (1) - (14) shall also apply to the sales by public auction carried out by the taxable dealers acting as organiser of a sale by public auction under the terms of the norms.

ART. 152^3 - Special scheme for investment gold

    (1) Investment gold shall mean:

    a) gold, in the form of a bar or a wafer of weights accepted/listed by the bullion markets, of a purity equal to or greater than 995 thousandths, whether or not represented by securities, except for small bars or wafers of a weight of 1 g or less;

    b) gold coins which:

    1. are of a purity equal to or greater than 900 thousandths;

    2. are minted after 1800;

    3. are or have been legal tender in the country of origin; and

    4. are normally sold at a price which does not exceed the open market value of the gold contained in the coins by more than 80%.

    (2) The coins sold for numismatic interest shall not come within the scope of this article.

    (3) The following shall be exempt from value-added tax:

    a) the supply, intra-Community acquisition and importation of investment gold, including investment gold represented by certificates for allocated or unallocated gold or traded on gold accounts and including, in particular, gold loans and swaps, involving a right of ownership or debt claim in respect of investment gold, as well as transactions concerning investment gold involving futures and forward contracts leading to a transfer of right of ownership or debt claim in respect of investment gold;

    b) services of agents who act in the name and for the account of another when they intervene in the supply of investment gold.

    (4) The taxable persons who produce investment gold or transform any gold into investment gold shall be allowed a right of option for normal taxation arrangements of supplies of investment gold to another taxable person which would otherwise be exempt under the provisions of paragraph (3) a).

    (5) The taxable persons, who in their trade normally supply gold for industrial purposes shall be allowed a right of option for normal taxation arrangements of supplies of investment gold as defined in paragraph (1) a) to another taxable person, which would otherwise be exempt under the provisions of paragraph (3) a).

    (6) The supplier carrying out agency services in the supply of gold, on behalf and in the account of another person may opt for taxation, if the other person has exercised the option provided in paragraph (4).

    (7) The options provided in paragraphs (4) - (6) shall be exercised by a written notification forwarded to the competent tax body. The option becomes effective on the date of registration of notification with the tax bodies or on the date of posting it, with acknowledgement of receipt, as the case may be, and it shall apply to all supplies of gold investments carried out as of that date. In case of option exercised by an agent, the option shall apply for all agency services provided by that agent for the benefit of the same mandate owner that exercised the option provided in paragraph (5). In case the options provided in paragraph (4) - (6) are exercised, the taxable persons may not revert to the special arrangements.

    (8) In case the supply of investment gold is tax exempt, according to this article, the taxable persons shall be entitled to deduct:

    a) tax due or paid in respect of investment gold supplied to them by a person who has exercised the right of option of taxation;

    b) tax due or paid in respect of supply to them, or intra-Community acquisition or importation of gold, which is subsequently transformed by them or by a third party on their behalf into investment gold;

    c) tax due or paid in respect of services supplied to them consisting of change of form, weight or purity of gold including investment gold.

    (9) The taxable person who produce investment gold or transform any gold into investment gold, shall be entitled to deduct tax due or paid by them in respect of acquisitions of goods or services linked to the production or transformation of that gold.

    (10) For the supplies of alloys and semi-finished products of gold of a purity greater than 325 thousandths, as well as for the supplies of investment gold, carried out by taxable persons that exercised the taxation option by the purchasers, taxable persons, the purchaser shall be the person liable to pay the tax, according to the norms.

    (11) The traders in investment gold keep account of all substantial transactions in investment gold and keep the documentation to allow identification of the customer in such transactions. Traders shall keep this information for a period of at least five years as of the end of the year when the transactions were carried out.

ART. 152^4 - Special scheme for non-established taxable persons supplying electronic services to non-taxable persons

    (1) For the purposes of this article:

    a) non-established taxable person means a taxable person who has neither established his business nor has a fixed establishment within the territory of the Community and who is not otherwise required to be registered for VAT purposes in the Community and who provides electronic services to non-taxable persons established in the Community;

    b) Member State of identification means the Member State which the non-established taxable person chooses to state when his activity as a taxable person within the territory of the Community commences in accordance with the provisions of this article;

    c) Member State of consumption means the Member State where the electronic services have as the place of supply, according to Article 56 (1) k) of the Directive 112, where the beneficiary, not acting as taxable person within an economic activity, is established, has his usual domicile or residence.

    (2) A non-established taxable person supplying electronic services, as defined in Article 125^1 (1) point 26, to a non-taxable person who is established in the Community or has his permanent address or usually resides in a Member State shall be allowed to use a special scheme for all those supplies within the Community. The special scheme shall allow, among others, the registration of a taxable person not established in a single Member State, according to this article, for all electronic services provided in the Community to the non-taxable persons established in the Community.

    (3) In case a non-established taxable person opts for the special scheme and chooses Romania as the Member State of identification, when his activity as a taxable person commences, such person must submit an electronic declaration of commencement of the activity with the competent tax body. The declaration shall contain the following information: name of the taxable person, postal address, electronic addresses, including personal websites, national tax number, if any, and a statement that the person is not identified for value-added tax purposes within the Community. The non-established taxable person shall notify electronically the competent tax body of any changes in the submitted statement of registration.

    (4) The competent tax body shall register, upon receipt of the statement of commencement of the activity, the non-established taxable person by means of a special registration code for VAT purposes and it shall communicate by electronic means the code allocated to him. It shall not be required to appoint a fiscal representative for the purpose of registration.

    (5) The non-established taxable person must notify by electronic means, the competent tax body, in case it ceases its activity or in case of subsequent changes that lead to its exclusion from the special scheme.

    (6) The competent tax body shall exclude the non-established taxable person from the register if the latter meets the following conditions:

    a) he notifies that he no longer supplies electronic services;

    b) competent tax body can assume that his taxable activities have ended;

    c) he no longer fulfils the requirements necessary to be allowed to use the special scheme;

    d) he persistently fails to comply with the rules concerning the special scheme.

    (7) The non-established taxable person shall submit by electronic means to the competent tax body a value-added tax return, according to the model established by the Ministry of Public Finance, whether or not electronic services have been supplied during the reporting fiscal period, within 20 days as of the end of each calendar quarter.

    (8) The value-added tax return shall set out the following information:

    a) the registration number provided in paragraph (4);

    b) the total value, less value-added tax, of supplies of electronic services for the reporting period, the quotas of the applicable tax and total amount of the corresponding tax owed for each Member State of consumption where tax has become due;

    c) the total tax due in the Community.

    (9) The value-added tax return shall be made in ROL. If the supplies have been made in other currencies, the exchange rate valid for the last date of the reporting period shall be used when filling out the value-added tax return. The exchange rates shall be those published by the European Central Bank for that day, or, if there is no publication on that day, on the next day of publication.

    (10) The non-established taxable person shall pay the total value-added tax owed to the Community to a bank account denominated in ROL, opened with the treasury, designated by the competent tax body, by the date when it must submit the special tax return. The norms shall establish the procedure of transferring the amounts due to each Member State, for the provision of services within their territory, by the non-established taxable person, registered in Romania for VAT purposes.

    (11) The non-established taxable person shall keep records of the services covered by this special scheme in sufficient detail to enable the competent tax bodies of the Member State of consumption to determine that the value-added tax return referred to in paragraph (7) is correct. These records should be made available electronically, upon request from the competent tax bodies, as well as from the Member States of consumption. The non-established taxable person shall maintain the records for a period of 10 years from the end of the year when the services were provided.

    (12) The non-established taxable person making use of this special scheme shall not exercise the deduction right by the special tax return, according to Article 147^1, but is will be able to exercise this right by a refund of the paid tax, in accordance with the provisions of Article 147^2 (1) b), if a taxable person established in Romania was not entitled to a similar compensation as regards the tax or a similar tax, under the terms provided by the legislation of the country where the non-established taxable person has an establishment.

CHAPTER XIII - Obligations

ART. 153 - Registration of taxable persons for VAT purposes

    (1) The taxable person which has established the headquarters of its business in Romania and that is pursuing or intends to pursue business that involves taxable and/or value-added tax exempt operations with right of deduction shall request registration for VAT purposes with the competent tax body, hereinafter referred to as normal registration for tax purposes, as follows:

    a) before proceeding to such operations, in the following instances:

    1. if he declares that he is going to yield a turnover reaching or exceeding the exemption threshold provided in Article 152 (1), with regard to the special exemption arrangements for small undertakings;

    2. if he declares that he is going to yield a turnover lower than the exemption threshold provided in Article 152 (1), but he opts for a normal tax arrangement;

    b) if during a calendar year he reaches or exceeds the exemption threshold provided in Article 152 (1), within 10 days as of the end of the month when he reached or exceeded such threshold;

    c) if the turnover yield during a calendar year is lower than the exemption threshold provided in Article 152 (1), but he opts for a normal tax arrangement;

    d) if he performs tax-exempt operations and opts for their taxation, according to Article 141 (3).

    (2) The taxable person with the headquarters of its business outside Romania, but established in Romania by means of a fixed establishment, according to Article 125^1 (2) b), shall be bound to request the registration for VAT purpose in Romania, as follows:

    a) before accepting the services, in case services are going to be accepted for the fixed establishment in Romania, services for which it is going to be obliged to pay the duty in Romania according to Article 150 (2), if the services are provided by a taxable person established for the purpose of Article 125^1 (2) in another Member State;

    b) before providing services, in the situation when the services provided in Article 133 (2) are going to be provided from the fixed establishment from Romania for a beneficiary that is a taxable person for the purpose of Article 125^1 (2) in another Member State that has the obligation to pay VAT in another Member State, according to the equivalent in the legislation of such Member State respectively of Article 150 (2);

    c) before carrying out certain economic activities from such fixed establishment under the terms established in Article 125^1 (2) b) and c) which involves:

    1. supplies of taxable goods and/or goods exempt from the right of deduction, including VAT-exempt intra-Community supplies according to Article 143 (2);

    2. provisions of taxable services and/or goods exempt from the value added tax with right of deduction, other than those provided in letters a) and b);

    3. operations exempt from tax and opts for their being taxed, according to Article 141 (3);

    4. intra-Community acquisitions of taxable goods.

    (3) The provisions of paragraph (1) shall not apply to the person treated as taxable person for the only reason that he carries out occasionally intra-Community supplies of new means of transport.

    (4) A taxable person not established in Romania, according to Article 125^1 (2) b), nor registered for VAT purposes in Romania shall request registration for VAT purposes with the competent tax bodies for operations carried out on the Romanian territory that entitle it to a tax deduction, before such operations are carried out, except for the situations when the person liable to pay the tax is the beneficiary, according to Article 150 (2) - (6). According to this article, the persons established outside the Community that supply electronic services to non-taxable persons from Romania and that are registered in another Member State shall not be liable to become registered in Romania for all electronic services provided in the Community, according to the special arrangement for electronic services.

    (5) A taxable person not established in Romania and not registered for VAT purposes in Romania, that intends:

    a) to carry out an intra-Community acquisition of goods, for which he is liable for payment of tax, according to Article 151

    b) to carry out an intra-Community supply of goods exempt from tax,

shall request registration for VAT purposes, according to this article, before performing the operation.

    (6) The taxable person established in the Community, but not in Romania, which is under the obligation to become registered for VAT purposes, may, under the terms established in the norms, fulfil this obligation by designating a fiscal representative. The taxable person not established within the Community that is bound to become registered for VAT purposes in Romania shall be under the obligation to become registered by designating a fiscal representative, under the terms established in the norms.

    (7) The competent tax bodies shall register for VAT purposes, according to this article, all persons that, in compliance with the provisions of this title, are obliged to request registration, according to paragraphs (1), (2), (4) or (5).

    (8) In case a person is obliged to register for VAT purposes, in compliance with the provisions of paragraphs (1), (2), (4) or (5), and does not request for registration, the competent tax bodies shall register such person ex officio.

    (9) The competent tax bodies may cancel the registration of a person for VAT purposes, according to this article, if, according to the provisions of this title, the person was not obliged to request registration nor was he/she entitled to request registration for VAT purposes, according to this article. Likewise, the competent tax bodies may cancel ex officio the registration of a person for VAT purposes, according to this article, in case of taxable persons appearing in the list of inactive taxpayers declared as such according to Article 11, as well as of taxable persons which are temporary inactive, list which was registered with the trade registry, according to the law. The procedure of removal from the records shall be established by the procedural rules in force. After cancelling the registration for VAT purposes the taxable persons may request registration for VAT purposes only if the situation that lead to the removal from the records is no longer in place.

    (10) The person registered according to this article shall notify in writing the competent tax bodies with regard to the changes in the information stated in the registration request or supplied by whatever means to the competent tax body, in relation to his registration or that are written in the registration certificate, within 15 days as of the time when any of the events below occur.

    (11) In case the carrying out of operations which entitle to benefit by the right to deduct tax no longer takes place or in case of shutdown of the economic activity, any person registered according to this Article shall notify in writing the competent tax bodies, within 15 days as of the time when any of the events below occur for the purpose of taking out of records of the persons registered for VAT purposes. Procedural norms shall establish the date when the persons are taken out of records and the applicable procedure takes place.

ART. 153^1 - Registration for VAT purposes of other persons carrying out intra-Community acquisitions or services

    (1) The following shall be obliged to request registration for VAT purposes, according to this article:

    a) the taxable person which has the head office of the economic activity in Romania and the non-taxable legal person established in Romania, not registered and which are not obliged to become registered, according to Article 153, and which are not already registered according to letters b) or c) or paragraph (2), which carries out an intra-Community acquisition in Romania, before carrying out the intra-Community acquisition, in case the value of such intra-Community acquisition exceeds the threshold for intra-Community acquisitions in the calendar year when the intra-Community acquisition takes place;

    b) the taxable person which has the head office of the economic activity in Romania, not registered and which is not obliged to become registered, according to Article 153, and which is not already registered according to letters a) or c) or paragraph (2), if it provides services with the location in another Member State, for which the beneficiary of the service is the person obliged to pay the tax according to the equivalent of the legislation of another Member State of Article 150 (2), before the service is provided;

    c) the taxable person which has the head office of the economic activity established in Romania, not registered and which is not obliged to become registered according to Article 153, and which is not already registered according to letters a) or b) or paragraph (2), if it receives from the provider, a taxable person established in another Member State, services for which it is bound to pay tax in Romania according to Article 150 (2) before accepting such services.

    (2) The taxable person which has the head office of the economic activity established in Romania, which is not registered and not obliged to register, according to Article 153, and the non-taxable legal person established in Romania may apply for registration, according to this article, in case either of these persons makes intra-Community acquisitions, according to Article 126 (6).

    (3) The competent tax bodies shall register for VAT purposes, according to this article, any person requesting registration, according to paragraph (1) or (2).

    (4) If the person obliged to register for VAT purposes, under paragraph (1), does not request registration, the competent tax bodies shall register such person ex officio.

    (5) The person obliged to register for VAT purposes, under paragraph (1) a), may request that its registration be cancelled at any time, after the end of the calendar year following the year when it was registered, if the value of its intra-Community acquisitions did not exceed the acquisition threshold in the year when the request is addressed or in the previous year and if it did not exercise its option according to paragraph (7).

    (6) The person registered for VAT purposes, according to paragraph (2), may request to cancel the registration at any time after the expiry of 2 calendar years that follow the year when he made such option for registration, if the value of its intra-Community acquisitions did not exceed the acquisition threshold in the year when the request is addressed or the previous year if it did not exercise his option according to paragraph (7).

    (7) If after the expiry of the calendar year provided in paragraph (5) or of the 2 calendar years provided in paragraph (6), following the year of registration, the taxable person shall make an intra-Community acquisition based on the registration code for VAT purposes, obtained according to this article, it shall be considered that the person has opted according to Article 126 (6), except for the case when he exceeded the intra-Community acquisition threshold.

    (8) The person registered according to paragraph (1) b) and c) may request cancellation of its registration at any time after the expiry of calendar year when it was registered, except for the situation when it must stay registered according to paragraphs (5) - (7).

    (9) The competent tax bodies shall cancel the registration of one person, according to this article, if:

    a) such person is registered for VAT purposes, according to Article 153; or

    b) such person is entitled to the cancellation of registration for VAT purposes, according to this article, and requests cancellation according to paragraphs (5), (6) and (8).

    (10) Registration for VAT purposes according to this Article shall not confer to the taxable person the quality of person habitually registered for VAT purposes, this code being used only for intra-Community acquisitions or for the services provided in Article 133 (2), received from taxable persons established in another Member State or provided to taxable persons established in another Member State.

    (11) The provisions of Article 153 (9) shall also apply accordingly to the persons registered for VAT purposes according to this Article.

ART. 154 - General provisions regarding registration

    (1) The registration code for VAT purposes, assigned according to Articles 153 and 153^1, shall have as prefix <>, according to the International Standards ISO 3166 - alpha 2.

    (2) The cancellation of registration for VAT purposes of a person shall not exonerate him from his obligations, according to this title, for any action prior to the date of cancellation and from the obligation to request registration, under the terms of this title.

    (3) The norms shall establish the cases where the persons not established in Romania which are under the obligation to pay VAT in Romania according to Article 150 (1) may be exempt from the registration for VAT purposes in Romania.

    (4) The registered persons:

    a) shall communicate, according to Article 153, the registration code for VAT purposes to all suppliers/providers or clients;

    b) shall communicate, according to Article 153^1, the registration code for VAT purposes to:

    1. the supplier/provider, when they have the obligation to pay the tax according to Article 150 (2) - (6) and Article 151;

    2. the beneficiary, a taxable person from another Member State, which provides services for which it is under the obligation to pay tax according to the equivalent of Article 150 (2) from another Member State.

ART. 155 - Invoicing

    (1) The taxable person carrying out the supply of goods or the provision of services, other than a supply/provision without a right of deduction of tax, according to Article 141 (1) and (2), must issue a fiscal invoice to each beneficiary, by the 15th working day of the month following the one when the chargeable event arises at the latest, except for the case when the invoice has already been issued. Likewise, the taxable person must issue an invoice to each beneficiary, for the amount of the advance payments cashed in relation to the supply of goods or provision of service, by the 15th working day of the month following the one when the when the advance payments were cashed at the latest, except for the case when the invoice has already been issued.

    (2) The person registered according to Article 153 must perform self-invoice, within the time limit provided in paragraph (1), for each self-supply of goods or each self-provision of services.

    (3) The taxable person shall issue an invoice, within the time limit provided in paragraph (1), for each distance sale made by him, under the terms provided in Article 132 (2).

    (4) The taxable person shall issue a self-invoice, within the time limit provided in paragraph (1), for each transfer he carried out in another Member State, under the terms of Article 128 (10) and for each intra-Community acquisition carried out in Romania under the terms established in Article 130^1 (2) a).

    (5) The invoice shall include mandatorily the following information:

    a) the serial number, based on one or several series, that uniquely identifies the invoice;

    b) the date of issuing the invoice;

    c) the date when the goods were supplied/services were provided or the date when a down payment was cashed, in so far as this date is different from the date when the invoice is issued;

    d) the name, address and registration code for VAT purposes or, as the case may be, the fiscal identification code of taxable person which issues the invoice;

    e) the name of the supplier/provider which is not established in Romania and which has appointed a fiscal representative, as well as the name, address and registration code for VAT purposes, according to Article 153, of the fiscal representative;

    f) the name and address of the beneficiary of goods and services, as well as the registration code for VAT purposes or the fiscal identification code of the beneficiary, if it is a taxable person or the non-taxable legal person;

    g) the name and address of the beneficiary which is not established in Romania and which has appointed a fiscal representative, as well as the name and address and the registration code provided in Article 153 of the fiscal representative;

    h) the denomination and the quantity of the goods supplied, the denomination of services provided, as well as the particulars provided in Article 125^1 (3) for defining the goods, in case of an intra-Community supply of new means of transport;

    i) the taxable amount of goods and services or, as applicable, the down payments invoiced, for each quota, exemption or non-taxable operation, the unit price, except the value-added tax, as well as the rebates, refunds, discounts, and other price cut-down;

    j) indication, depending on the tax quotas, of the tax quota applied and of the total amount of the tax collected, denominated in ROL;

    k) in case there is no payable tax, the reference to the applicable provisions of this title or of the Directive 112, or any other mention which shows that the supply of goods or the provision of services is subject to an exemption or a reversed taxation procedure;

    l) in case the special regime for travelling agencies is applied, the reference made to Article 152^1, to Article 306 of Directive 112 or any other reference that would indicate that the special regime has been applied;

    m) in case one of the special regimes for second-hand goods, works of art, collector's items and antiques is applied, the reference made to Article 152^2, to Article 313, 326 or 333 of Directive 112 or any other reference that would indicate that one of the special regimes has been applied;

    n) a reference to other invoices or documents previously issued, when more invoices or documents are issued for the same operation.

    (6) The invoices shall not be mandatorily be signed and stamped.

    (7) By way of derogation from paragraph (1) and without being contrary to the provisions of paragraph (3), the taxable persons shall exempt from issuing a fiscal invoice for the following operations, except for the cases when the beneficiary requests a fiscal invoice:

    a) the transport of persons by taxi, as well as the transport of persons based on travel tickets or subscriptions;

    b) supplies of goods by stores by retail and provision of services to the public, written down in documents without naming the purchaser;

    c) *** Repealed

    (8) The norms shall establish the terms for:

    a) issuing a centralising invoice for more separate supplies of goods or separate provisions of services;

    b) issuing of invoices by the purchaser or by the client on behalf and in the account of the supplier/provider;

    c) issuing of invoices by electronic means;

    d) issuing of invoices by a third party in the name and on behalf of the supplier/provider;

    e) preservation of invoices in a certain place.

    (9) By way of derogation from the provisions of paragraph (5), simplified invoices may be drawn up in the situations established by norms. Regardless of the case, the invoices must be sent in simplified system and must include at least the following information:

    a) the date of issuing;

    b) the identification of the taxable person issuing it;

    c) the identification of the types of goods and services supplied;

    d) the amount to be paid or the information necessary to calculate it.

    (10) Any document or message that modifies and refers in particular and without ambiguities to the initial invoice shall be treated as an invoice.

    (11) Romania shall accept the documents or messages on paper or the electronic ones as invoices, if they meet the conditions provided by this article.

    (12) In case packages that include more invoices are transmitted or made available to the same addressee by electronic means, the information common to the individual invoices can be mentioned just once, provided they are accessible for each invoice.

ART. 155^1 - Other documents

    (1) The taxable person or the non-taxable legal person, liable for payment of tax under the terms of Article 150 (2) - (4) and (6) and of Article 151, must issue self-invoices for such operations, at the latest by the 15th day of the month following the one when the chargeable event of tax arises, in case such person is no longer in possession of the invoice issued by the supplier/provider.

    (2) The taxable person or the non-taxable legal person liable for payment of tax under the terms of Article 150 (2) - (4) and (6) must self-invoice the amount of down payments paid in relation to such operations, at the latest by the 15th day of the month following the one when it paid off the down payments, in case such person is no longer in possession of the invoice issued by the supplier/provider, except for the situation when the chargeable event of tax has arisen in the same month, in which case the provisions of paragraph (1) shall be applicable.

    (3) Upon receipt of invoice regarding the operations provided in paragraphs (1) and (2), the taxable person or the non-taxable legal person shall make on the invoice a mention referring to the self-invoicing, and on the self-invoice a mention referring to the invoice.

    (4) In case of supplies with a view to testing or checking the compliance, for the stocks in consignment or of the stocks made available to the client, on the date of making the goods available or dispatching them, the taxable person shall issue to the consignee of goods a document including the following information:

    a) a sequential serial number and the date of issuing the document;

    b) the name and address of the parties;

    c) the date of date of making the goods available or dispatching them;

    d) name and quantity of goods.

    (5) In the cases provided in paragraph (4) the taxable person must issue a document to the consignee of goods, at the time of a partial or full return of goods by the latter. This document must include all information provided in paragraph (4), except for the date of making the goods available or dispatching them, that shall be replaced by the date of receipt of goods.

    (6) For the operations mentioned in paragraph (4), the invoice shall be issued at the time when the consignee becomes the owner of goods and shall include a reference to the documents issued according to paragraphs (4) and (5).

    (7) The documents provided in paragraph (4) and (5) must not be issued in case the taxable person makes deliveries of goods in consignment or supplies goods for stocks made available to the client, from Romania to another Member State that does not apply simplification measures, in which case it must self-invoice the transfer of goods, according to Article 155 (4).

    (8) In case the taxable person makes available the goods or dispatches them to the consignee is not established in Romania, he shall not be obliged to issue the documents provided in paragraph (4) and (5). In this case, the taxable person that is the consignee of goods in Romania shall be the one to issue a document that includes the information provided in paragraph (4), except for the date of making them available or of the dispatch, that is replaced by the date of receipt of goods.

    (9) The taxable person that receives the goods in Romania, in the cases provided in paragraph (8), shall also issue a document, at the time of a partial or full return of goods. This document shall include the information provided in paragraph (4), except for the date of making the goods available or of the dispatch, that is replaced by the date of return of goods. Moreover, a reference to this document shall be made in the invoice received, at the time when the taxable person becomes the owner of goods or at the time when it can be assumed that the goods were supplied to him.

    (10) The partial or full transfer of assets, provided in Article 128 (7) and Article 129 (7) shall be recorded in a documents drawn up by the parties involved in the operation, each party receiving a copy. This document must include the following information:

    a) a sequential serial number and the date of issuing the document;

    b) the date of transfer;

    c) the name and address and the code of registration for VAT purposes, provided in Article 153, of both parties, as applicable;

    d) an exact description of the operation;

    e) the value of the transfer.

ART. 156 - Records of operations

    (1) The taxable persons established in Romania must to keep correct and complete records of all operations performed during their economic activity.

    (2) The persons liable for the payment of tax for any operation and that are identified as persons registered for VAT purposes, according to this title, for the purpose of carrying out any operation, must keep records for any operation governed by this title.

    (3) The taxable persons or the non-taxable legal persons must keep correct and complete records of all intra-Community acquisitions.

    (4) The records provided in paragraph (1) - (3) must be drawn up and kept so as to include the information, documents and accounts, including the register of non-transfers and the register of goods received from another Member State, in compliance with the provisions in the norms.

    (5) In case of joint ventures that do not represent a taxable person, the legal rights and obligations regarding the tax shall devolve on the associate that keeps the records of incomes and expenses, according to the contract concluded between parties.

ART. 156^1 - Fiscal period

    (1) The fiscal period shall be the calendar month.

    (2) By way of derogation from the provisions of paragraph (1), the fiscal period shall be the calendar quarter for the taxable person which, during the previous year, has obtained a turnover from taxable operations and/or exempt operations with right of deduction or non-taxable in Romania, according to Articles 132 and 133, but which entitle to a right of deduction according to Article 145 (2) b), which has not exceeded the threshold of EUR 100 000, the ROL equivalent of which shall be calculated according to the norms, except where the taxable person has carried out one or several intra-Community acquisitions of goods during the previous calendar year.

    (3) The taxable person registered during the year must declare, on the occasion of registration according to Article 153, the turnover forecast to be yield during the period left by the end of the calendar year. If the estimated turnover does not exceed the threshold provided in paragraph (2), re-calculated according to the number of months left by the end of the calendar year, the taxable person shall submit quarterly tax returns during the year of registration.

    (4) The small undertakings registered for VAT purposes, according to Article 153, during the year, must declare on the occasion of registration the turnover thus obtained, recalculated based on the activity corresponding to a whole calendar year. If this turnover exceeds the threshold provided in paragraph (2), in that year, during that year, the fiscal period shall be the calendar year, according to paragraph (1). If this recalculated turnover does not exceed the threshold provided in paragraph (2), the taxable person shall use the calendar quarter as fiscal period, except where the taxable person has carried out one or several intra-Community acquisitions of goods during the previous calendar year, before registration for VAT purposes according to Article 153.

    (5) If the turnover actually obtained during the year of registration, re-calculated based on the activity corresponding to a whole calendar year, exceeds the threshold provided in paragraph (2), during the next year, the fiscal period shall be the calendar month, according to paragraph (1). If this actual turnover does not exceed the threshold provided in paragraph (2), the taxable person shall use the calendar quarter as fiscal period, except where the taxable person has carried out one or several intra-Community acquisitions of goods during the previous calendar year.

    (6) The taxable person that, according to paragraphs (2) and (5), is obliged to submit the quarterly tax returns must submit with the competent tax bodies, by the 25th January inclusive, a statement of mentions which documents the turnover from the previous year, obtained or, as the case may be, re-calculated. and a mention referring to the fact that it has not carried out any intra-Community acquisitions of goods during the previous calendar year.

    (6^1) By way of exception from the provisions of paragraphs (2) - (6), for the taxable person that uses the calendar quarter as tax period and make an intra-Community acquisition taxable in Romania, the tax period becomes the calendar year starting with:

    a) the first month of a calendar quarter, if the chargeability of the tax related to the intra-Community acquisition occurs during this first month of such quarter;

    b) the third month of the calendar quarter, if the chargeability of the tax related to the intra-Community acquisition occurs during the second month of such quarter. The first two months of such quarters shall be a separate tax period, for which the taxable person shall be bound to submit a tax return according to Article 156^2 (1);

    c) the first month of a calendar quarter, if the chargeability of the tax related to the intra-Community acquisition occurs during the third month of a calendar quarter.

    (6^2) The taxable person which, according to paragraph (6^1), is bound to change the taxable period must submit a statement of mentions with the competent tax body, within maximum 5 working day as of the end of the month when the chargeability of the intra-Community acquisition that generates that obligation arises, and it shall use the calendar month as tax period for the current year and for the next year. If during the next year such person does not carry out any intra-Community acquisition of goods, it shall revert according to paragraph (1) to the calendar quarter as tax period. To this end it shall have to submit the statement of mentions provided in paragraph (6).

    (7) The norms shall also establish the situations and conditions when another fiscal period than the month or the calendar quarter may be used provided that this period does not exceed one calendar month.

ART. 156^2 - Tax return

    (1) The persons registered according to Article 153 must submit to the competent tax bodies, for each fiscal period, a tax return, by the 25th of the month following the one when the fiscal period in question ends.

    (2) The tax return drawn up by the persons registered according to Article 153 shall include the amount of the deductible tax for which the right of deduction arises in the fiscal period of reporting and, as the case may be, the amount of the tax for which the right of deduction is exercised, under the terms provided in Article 147^1 (2), the amount of the tax collected that becomes chargeable during the fiscal reporting period and, as the case may be, the amount of the collected tax not written in the tax return of the fiscal period when the tax became chargeable, as well as any other information provided in the model established by the Ministry of Public Finance.

    (3) The data incorrectly written in a tax return may be corrected by the tax return of a subsequent fiscal period and they shall be entered in the regularisation column.

ART. 156^3 - Special tax return and other statements

    (1) The persons not registered and that are not bound to register according to Article 153, must submit with the competent tax bodies a special tax return, as follows:

    a) for intra-Community acquisitions of taxable goods, others than those provided in letter b) and c), by the taxable persons registered according to Article 153^1;

    b) for intra-Community acquisitions of new means of transport by any person, regardless of whether it is or not registered according to Article 153^1;

    c) for intra-Community acquisitions of excisable products, by taxable persons and non-taxable legal persons, regardless of whether they are registered or not according to Article 153^1;

    d) for operations and by the persons liable for the payment of tax, according to Article 150 (2) - (4), and (6);

    e) for operations and by the persons liable for the payment of tax, according to Article 150 (5), except for the situation when an import of goods or an intra-Community acquisitions of goods takes place.

    (2) The special tax return must be drawn up according to the model established by order of the National Agency of Tax Administration and shall be submitted by the 25th inclusive of the month following the one when the operations provided in paragraph (1) become chargeable. The special tax return must be submitted only for the periods of chargeability of tax. By way of exception, the persons which are not registered for VAT purposes according to Article 153, regardless of whether they are registered or not according to Article 153^1, shall be under the obligation to submit the special tax return for intra-Community acquisitions of new means of transport, before the registration in Romania, but not later than the 25th of the month following the one when the tax for such intra-Community acquisition becomes chargeable.

    (3) For the purpose of applying paragraph (2), the tax bodies competent to administer the persons provided in paragraph (1) b), or the persons not registered and who do not have to become registered according to Article 153, respectively, regardless of the fact that they are registered according to Article 153^1, shall issue, for the purpose of registration of the new means of transport, a certificate attesting the payment of the duty, whose model or contents shall be established by order of the president of the National Agency of Tax Administration. In case of intra-Community acquisitions of means of transport which are new within the meaning of Article 125^1 (3), carried out by the persons provided in paragraph (1) b), in view of registration, the competent tax bodies shall issue a certificate which reflects that the tax is not payable in Romania.

    (4) The taxable person registered for VAT purposes according to Article 153, with a turnover, as provided in Article 152 (2), realised at the end of the calendar year, lower than EUR 10 000, calculated at the exchange rate existing in the last working day of the year, must communicate through a written notification addressed to the competent tax bodies in their jurisdiction, by the 25 February inclusive of the next year, the following information:

    a) the total amount of the supply of goods and of the provisions of service by the persons registered for VAT purposes according to Article 153, as well as the amount of related tax;

    b) the total amount of the supply of goods and of the provisions of service by the persons not registered for VAT purposes according to Article 153, as well as the amount of related tax.

    (5) The taxable persons not registered for VAT purposes according to Article 153, with a turnover, as provided in Article 152, but excluding the incomes derived from the sale of tickets for international road public transport, realised at the end of a calendar year, which is between EUR 10 000 and 35 000, calculated at the exchange rate existing in the last day of the year, and 35 000, calculated at the exchange rate communicated by the National Bank of Romania on the date of accession, must communicate through a written notification addressed to the competent tax bodies, by the 25 February inclusive of the next year, the following information:

    a) the total amount of the supply of goods and of the provisions of services by the persons registered for VAT purposes according to Article 153;

    b) the total amount of the supply of goods and of the provisions of services by the persons not registered for VAT purposes according to Article 153;

    c) the total amount and the related tax of the acquisitions from persons registered for VAT purposes according to Article 153;

    d) the total amount of the acquisitions from persons not registered for VAT purposes according to Article 153.

    (6) The taxable persons registered for VAT purposes according to Article 153 that provide international road public transport services must communicate through a written notification to the competent tax bodies, by the 25 February inclusive of the next year, the total amount of the incomes derived from the sale of tickets for international road public transport with place of departure from Romania.

    (7) The importers which hold a unique authorisation for simplified customs procedures issued by another Member State or which carries out imports of goods in Romania from a VAT viewpoint for which it has no obligation to submit import customs declarations must submit with the customs authorities an import declaration for VAT and excise duties on the date when the tax becomes chargeable according to the provisions of Article 136.

ART. 156^4 - Recapitulative statement

    (1) Any taxable person registered for VAT purposes according to Article 153 or to Article 153^1 must draw up and submit with the competent tax bodies, by the 15th inclusive of the month following a calendar month, a recapitulative statement mentioning:

    a) intra-Community supplies exempt from the payment of tax provided in Article 143 (2) a) and d), for which the tax became chargeable during such calendar month;

    a) the supplies of goods within a triangular operation provided in Article 132^1 (5), carried out in the Member State of arrival of goods and which are declared as intra-Community supplies with a T code assigned and for which the tax became chargeable during such calendar month;

    c) the provisions of services provided in Article 133 (2) carried out for the benefit of taxable persons not established in Romania, but established within the Community, others than the VAT-exempt ones in the Member State where they are taxable, for which tax chargeability arose during such calendar month;

    d) the intra-Community acquisitions of taxable acquisitions, for which tax chargeability arose during such calendar month;

    e) the acquisitions of services provided in Article 133 (2) carried out by taxable persons from Romania which are under the obligation to pay tax according to Article 150 (2), for which tax chargeability arose during such calendar month, from taxable persons not established in Romania, but established within the Community.

    (2) The recapitulative statement must be drawn up according to the model established by order of the president of the National Agency of Tax Administration, for each calendar month when the chargeability of tax arose for such operations.

    (3) The recapitulative statement includes the following information:

    a) the identification code for VAT purposes of the taxable person from Romania, pursuant to which such person has carried out intra-Community supplies of goods under the terms mentioned in Article 143 (2) a), has provided services under the terms established in Article 133 (2), other than those exempt from VAT in the Member State where they are taxable, has carried out taxable intra-Community acquisitions of goods from another Member State or has acquired the services provided in Article 133 (2), others than those VAT-exempt;

    b) the identification code for VAT purposes of the person which acquire goods or receives services in another Member State than Romania, pursuant to which the supplier or provider from Romania has carried out an intra-Community supply exempt from VAT according to Article 143 (2) a) or the provisions of services provided in Article 133 (2), others than those VAT-exempt;

    c) the identification code for VAT purposes from another Member State assigned to the supplier/provider that carries out an intra-Community supply/provision of services under the terms established in Article 133 (2) or, as applicable, only the code of the Member State where the intra-Community supply or the provision of services, in case the supplier/provider failed to meet his registration obligation for VAT purposes, for the persons from Romania that carry out taxable intra-Community acquisitions or acquire the services provided in Article 133 (2), others than those VAT-exempt;

    d) the identification code for VAT purposes from Romania of the taxable person that makes the transfer in another Member State and pursuant to which it carried out such transfer, in accordance with Article 143 (2) d), as well as the identification code for VAT purposes of the taxable person from the Member State where the dispatch or the transport of goods was carried out;

    e) the identification code for VAT purposes from the Member State where the dispatch or the transport of goods began of the taxable person which carries out in Romania a taxable intra-Community acquisition according to Article 130^1 (2) a) or, as applicable, only the code of such Member State, in case the taxable person is not identified for VAT purposes in that Member State, as well as the identification code for VAT purposes from Romania of this person;

    f) for intra-Community supplies of goods according to Article 143 (2) a) and for provisions of services provided in Article 133 (2), others than those VAT-exempt in the Member State where these are taxable, the total value of supplies/provisions for each client separately;

    g) for intra-Community supplies of goods consisting in transfers exempt according to Article 143 (2) d), the total value of supplies, determined in compliance with the provisions of Article 137 (1) c), per each identification code for VAT purposes assigned to the taxable person by the Member State where the dispatch or transport of goods was completed;

    h) for taxable intra-Community acquisitions, the total value of per each supplier separately;

    i) for assimilated intra-Community acquisitions that follow a transfer from another Member State, their total value established in compliance with the provisions of Article 137 (1) c), per each identification code for VAT purposes assigned to the taxable person by the Member State where the dispatch or transport of goods began or, as applicable, per code of such Member State, in case the taxable person is not identified for VAT purposes in that Member State;

    j) for the acquisitions of services provided in Article 133 (2), others than those VAT-exempt, their total value per each provider separately;

    k) value of VAT adjustments carried out in compliance with the provisions of Article 138 and Article 138^1.

    These shall be declared for the calendar month during which the regularisation was communicated to the client.

    (4) The recapitulative statements shall be submitted only for the periods when the tax becomes chargeable for the operations mentioned in paragraph (1).

ART. 157 - Payment of the tax to the budget

    (1) Any person shall be required to pay the payable tax at the competent tax bodies by the date when they are obliged to submit one of the tax returns or statements provided in Article 156^2 and 156^3.

    (2) By way of exception from paragraph (1), the taxable person registered according to Article 153 shall disclose in the tax return provided in Article 156^2, both as collected tax and as deductible tax, within the limits and conditions established in Articles 145 - 147^1, the tax related to the intra-Community acquisitions, goods and services acquired for its benefit, for which such person is liable to pay tax, under the terms of Article 150 (2) - (6).

    (3) The tax for the import of goods, with the exception of tax-exempt goods, shall be paid to the customs authority in accordance with rules in force for the payment of import duties. The importers which hold a unique authorisation for simplified customs procedures issued by another Member State or which carry out imports of goods in Romania from VAT viewpoint for which they do not have an obligation to submit import customs declarations must pay the value added tax at the customs authority by the date when they are bound to submit the import declaration for VAT and excise duties.

    (4) By way of exception from the provisions of paragraph (3), by 31 December 2012 inclusive, the actual payment shall not be carried out at the customs bodies by the taxable persons registered for VAT purposes according to Article 153, according to Article 153, which obtained certificates for late payment, under the terms laid down by order of the minister of public finances. As of 1 January 2013, by way of exception from the provisions of paragraph (3), the actual payment shall not be carried out at the customs bodies by the taxable persons registered for VAT purposes, according to Article 153.

    (5) The taxable persons provided in paragraph (4) shall record the value-added tax related to imported goods in the tax return provided in Article 156^2, both as collected tax and as deductible tax, within the limits and conditions established in Article 145 - 147^1.

    (6) In case the taxable person is not established in Romania and is exempt, under the terms of Article 154 (4), from registration, according to Article 153, the competent tax bodies must issue a decision that indicates the modality of payment of tax for the occasional supply of goods and/or provision of services for which the taxable person is liable to pay tax.

    (7) For the tax-exempt import of goods under the terms provided in Article 142 (1) l), the customs authorities may request that securities are established for the value added tax. The security regarding the value-added tax related to such imports shall be established and released under the terms established by the order of the minister of public finance.

ART. 158 - Responsibilities of payers and of tax bodies

    (1) Any person liable to pay the value-added tax shall be liable for the correct calculation and payment within the legal time limit of the value-added tax to the state budget and for the submission within the legal time limit of the tax return and statements as provided in Articles 156^2 - 156^4, to the competent tax body, according to the present title and to the customs legislation in force.

    (2) The tax shall be administered by the tax bodies and the customs authorities, according to their competencies, as provided in the present title, the norms and the customs legislation in force.

ART. 158^1 - Register of taxable persons registered for VAT purposes

    The Ministry of Public Finance shall create an electronic database that should contain information on the transactions performed by the taxable persons registered for VAT purposes, with a view to carrying out the information exchange in the field of value-added tax with the Member States of the European Union.

CHAPTER XIV - Common provisions

ART. 159 - Correction of documents

    (1) In order to correct information contained by the fiscal invoices or other documents that substitute the invoices, the following shall be done:

    a) in case the document has not been transferred to the beneficiary, such document shall be cancelled and a new document shall be issued;

    b) in case the document has been transmitted to the beneficiary, either a new document shall be issued which must include, on the one hand, the information in the initial document, the number and date of the corrected document, the values with a minus sign, and, on the other hand, the information and correct values, or a new document containing the information and correct values shall be issued and, at the same time, there shall be issued a new document with the values with a minus sign where the number and date of the corrected document are written.

    (2) In the cases provided in Article 138, the suppliers of goods and/or the providers of services must issue fiscal invoices or other documents, with the values recorded with a minus sign when the taxable amount is diminished, or, as the case may be, without a minus sign, if the taxable amount is increased, which shall also be transmitted to the beneficiary, except for the situations provided in Article 138 d).

    (3) The taxable persons that have been subject to a tax audit and where errors have been found and determined as regards the correct establishing of the collected tax, being under the obligation to pay these amounts pursuant to the administrative act issued by the competent fiscal authority, may issue correction invoices according to paragraph (1) b) to the beneficiaries. The issued invoices shall make a mention with regard to their being issued after the control and shall be written down in a separate heading in the tax return. The beneficiaries shall be entitled to deduct the tax written down in these invoices within the limits and conditions established in Article 145 - 147^1.

ART. 160 - Simplification measures

    (1) By way of exception from the provisions of Article 150 (1), in case of taxable operations the taxable person obliged to pay the tax shall be the beneficiary for the operations provided in paragraph (2). The mandatory condition for the application of the reverse tax shall be that both the supplier and beneficiary must be registered for VAT purposes, according to Article 153.

    (2) The operations for which the reversed taxation is applied shall be the following:

    a) the supply of waste and the secondary raw materials resulted from their sale, as defined by the Government Emergency Ordinance No 16/2001 on the management of recyclable industrial wastes, republished, as subsequently amended;

    b) the supply of wood material and wooden materials, as defined by the Law No 46/2008, as subsequently amended and supplemented.

    (3) On the invoices issued for the supplies of goods/provisions of services provided in paragraph (2) the suppliers/providers shall not write the related collected tax. The beneficiaries shall determine the related tax, which they shall record in the tax return provided in Article 156^2, both as collected tax and as deductible tax. The beneficiaries shall be entitled to the deduction of tax within the limits and the conditions established in Article 145 -147^1.

    (4) Both the suppliers and the beneficiaries shall be liable for the application of the provisions of this article. The norms shall establish the liabilities of the parties involved in case the reversed taxation was not applied.

    (5) The provisions of the present article shall only apply for the supplies of goods/provisions of services inside the country.

ART. 160^1 *** Repealed

CHAPTER XV - Transitory provisions

ART. 161*) - Transitory provisions

    (1) For applying the provisions of paragraphs (2) - (14):

    a) a real estate or a part of it shall be considered as having been built before the accession date, if such real estate or a part of it was first used before the accession date;

    b) a real estate or a part of it shall be considered as having been acquired before the accession date, if the legal formalities for the transfer of the property title from the seller to the buyer had been carried out before the accession date;

    c) the transformation or modernisation of a real estate or a part of it shall be considered as having been made until the accession date if, after such transformation or modernisation, it was first used before the accession date;

    d) the transformation or modernisation of a real estate or a part of it shall be considered as having been made after the accession date if, after such transformation or modernisation, it was first used after the accession date.

    e) the provisions of paragraphs (4), (6), (10) and (12) shall only apply for the modernisation or transformation works before the accession date, that have been finalised after the accession date, that not exceed 20% of the value of the real estate or of a part of it, excluding the value of the land, after transformation or modernisation.

    (2) The taxable person that was entitled to a full or partial deduction of tax and that, on or after the date of accession, does not opt for taxation or cancel the taxation option of any of the operations provided in Article 141 (2) e), for a real estate or a part of it, built, acquired, transformed or modernised before the accession date, by derogation from the provisions of Article 149, shall adjust the tax, according to the norms.

    (3) The taxable person that was not entitled to a full or partial deduction of tax for a real estate or a part of it, built, acquired, transformed or modernised before the accession date, opts for the taxation of any of the operations provided in Article 141 (2) e), on or after the accession date, by derogation from the provisions of Article 149, shall adjust the related deductible tax, according to the norms.

    (4) In case a real estate or a part of it, built, acquired, transformed or modernised before the accession date is transformed or modified after the accession date, and the value of each transformation or modernisation carried out after the accession date does not exceed 20% of the value of a real estate or a part of it, less the value of land, after transformation or modernisation, the taxable person that was entitled to a full or partial deduction of the related tax and that does not opt for the taxation of the operations provided in Article 141 (2) e) or that cancels the taxation operation, on or after the accession date, by derogation from the provisions of Article 149, shall adjust the tax, according to the norms.

    (5) In case a real estate or a part of it, built, acquired, transformed or modernised before the accession date is transformed or modified after the accession date, and the value of each transformation or modernisation carried out after the accession date exceeds 20% of the value of a real estate or a part of it, less the value of land, after transformation or modernisation, the taxable person that was entitled to a full or partial deduction of the related tax and that does not opt for the taxation of the operations provided in Article 141 (2) e) or cancels the taxation operation, on or after the accession date shall adjust the related deductible tax, according to Article 149.

    (6) In case a real estate or a part of it, built, acquired, transformed or modernised before the accession date is transformed or modified after the accession date, and the value of each transformation or modernisation carried out after the accession date does not exceed 20% of the value of a real estate or a part of it, less the value of land, after transformation or modernisation, the taxable person that was not entitled to a full or partial deduction of the related tax and that does not opt for the taxation of the operations provided in Article 141 (2) e) on or after the accession date shall adjust the related deductible tax, according to the norms.

    (7) In case a real estate or a part of it, built, acquired, transformed or modernised before the accession date is transformed or modified after the accession date, and the value of each transformation or modernisation carried out after the accession date exceeds 20% of the value of a real estate or a part of it, less the value of land, after transformation or modernisation, the taxable person that was not entitled to a full or partial deduction of the related tax and that opts for the taxation of the operations provided in Article 141 (2) e) on or after the accession date shall adjust the tax, according to the norms.

    (8) The taxable person that was entitled to full or partial deduction of the tax related to a building or a part of it, to the land on which it is grounded or any other land where building is not possible, built, acquired, transformed or modernised before the accession date and that, on or after the accession date, does not opt for the taxation of operations provided in Article 141 (2) f), shall adjust the related deductible tax, under the terms of Article 149, but the adjustment period shall be limited to 5 years.

    (9) The taxable person that was not entitled to full or partial deduction of the tax related to a building or a part of it, to the land on which it is grounded or any other land where building is not possible, built, acquired, transformed or modernised before the accession date and that, on or after the accession date, opts for the taxation of operations provided in Article 141 (2) f), shall adjust the related deductible tax under the terms of Article 149, but the adjustment period shall be limited to 5 years.

    (10) In case a building or a part of it, the land on which it is grounded or any other land where building is not possible, built, acquired, transformed or modernised before the accession date, are transformed or modernised after the accession date, and the value of each transformation or modernisation carried out after the accession date does not exceed 20% of the value of the construction, less the value of land, after transformation or modernisation, by way of derogation from the provisions of Article 149, the taxable person that was entitled to a full or partial deduction of the related tax does not opt for the taxation of the operations provided in Article 141 (2) f), on or after the accession date, shall adjust the tax deducted before and after the accession date, according to Article 149, but the adjustment period is limited to 5 years.

    (11) In case a building or a part of it, the land on which it is grounded or any other land where building is not possible, built, acquired, transformed or modernised before the accession date, are transformed or modernised after the accession date, and the value of each transformation or modernisation carried out after the accession date exceeds 20% of the value of the construction, less the value of land, after transformation or modernisation, the taxable person that was entitled to a full or partial deduction of the related tax does not opt for the taxation of the operations provided in Article 141 (2) f), on or after the accession date, shall adjust the tax deducted before and after the accession date, according to Article 149.

    (12) In case a building or a part of it, the land on which it is grounded or any other land where building is not possible, built, transformed or modernised before the accession date, are transformed or modernised after the accession date, and the value of each transformation or modernisation carried out after the accession date exceeds 20% of the value of the construction, less the value of land, after transformation or modernisation, the taxable person that was not entitled to a full or partial deduction of the related tax opts for the taxation of the operations provided in Article 141 (2) e), on or after the accession date, shall adjust the tax deducted before and after the accession date, according to Article 149, but the adjustment period is limited to 5 years.

    (13) In case a building or a part of it, the land on which it is grounded or any other land where building is not possible, built, transformed or modernised before the accession date, are transformed or modernised after the accession date, and the value of each transformation or modernisation carried out after the accession date exceeds 20% of the value of the construction, less the value of land, after transformation or modernisation, the taxable person that was not entitled to a full or partial deduction of the related tax opts for the taxation of the operations provided in Article 141 (2) e), on or after the accession date, shall adjust the tax deducted before and after the accession date, according to Article 149.

    (14) The provisions of paragraphs (8) - (13) shall not apply in case of a new building or of a part of it, as defined in Article 141 (2) f).

    (15) In case of sale contracts of goods with payment in instalments, validly concluded, before 31 December 2006 inclusively, also pursued after the date of accession, the tax related to the overdue instalments after the accession date shall become chargeable on each of the dates specified in the contract for the payment of the instalments. In case of leasing contracts validly concluded, before 31 December 2006 inclusively, also pursued after the date of accession, the interests related to the overdue instalments after the accession date shall not be included in the taxable amount of tax.

    (16) In case of tangible movable property brought into the country before the accession date by the leasing companies, Romanian legal persons, based on certain leasing contracts concluded with the users, Romanian natural or legal persons, and that were placed under an import customs procedure, by exempting from the payment of the amounts related to all import duties, including of the value-added tax, if they are acquired after the accession date by the users, the regulations in force on the date when the contract becomes effective shall apply.

    (17) The investment objectives finalised through a capital good, for which the year following the year of commissioning is the accession year of Romania to the European Union, shall be subject to the scheme for adjustment of the deductible tax provided in Article 149.

    (18) The tax exemption certificates issued by the accession date for supplies of goods and provisions of services financed by aids or non-refundable loans, granted by foreign governments, by the international bodies and non-profit-making organisations and charity organisations from abroad and from the country or by natural persons shall preserve their validity during the pursuing of objectives. Supplements of the tax exemption certificates shall not be allowed after 1 January 2007.

    (19) In case of firm contracts, concluded by 31 December 2006 inclusive, the legal provisions in force on the date when the contracts become effective shall apply for the following operations:

    a) the research and development and innovation activities for programmes, sub-programmes and projects, as well as of actions included in the National Plan of research and development and innovation, in the Nucleus Programs and in Sector Plans, as provided by the Government Ordinance No 57/2002 on the scientific research and technological development, approved with amendments and additions by the Law No 324/2003, as subsequently amended, as well as research-development and innovation activities financed by international, regional and bilateral partnerships;

    b) construction, arrangement, repairs and maintenance works for the monuments commemorating the warriors, heroes, victims of war and of the Revolution of December 1989.

    (20) The additional papers to the contracts provided in paragraph (19), concluded after 1 January 2007 inclusive, the legal provisions in force after the date of accession shall be applicable.

    (21) For the performance bonds withheld from the equivalent value of the construction-assembly works, recorded as such in the fiscal invoices by 31 December 2006 inclusive, the legal provisions in force on the date when such bonds were established shall be applicable with regard to the chargeability of the value-added tax.

    (22) For the real estate works that result in an immovable property, for which the general contractors have opted that, before 1 January 2007, the payment of tax be made on the date of supply of the immovable property, the legal provisions in force on the date when they expressed this option shall apply.

    (23) The joint ventures among Romanian taxable persons and taxable persons established abroad or formed only of taxable persons established abroad, registered as payers of value-added tax, until 31 December 2006 inclusive, according to the legislation in force on the date of setting up, shall be considered separate taxable person and shall continue to be registered for VAT purposes, by the date of finalisation of contracts for which they were set up.

    (24) The operations carried out by the date of accession based on some ongoing contracts on that date shall be subject to the provisions of this title, with the exceptions provided in this article and in Article 161^1.

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*) See the note at the end of the statutory instrument.

ART. 161^1 - Operations carried out before and after the date of accession

    (1) The provisions in force at the time when the goods were placed under one of the suspensive procedures provided in Article 144 (1) a) points 1 - 7 or under a similar procedure in Bulgaria, shall continue to apply as of the date of accession, until the exit of the goods from such procedures, when such goods, original from Bulgaria or from the Community area, as it was before the date of accession:

    a) entered Romania before the date of accession; and

    b) were placed under such a procedure upon entry in Romania; and

    c) were taken out of such procedure before the date of accession.

    (2) The occurrence of any of the events below on or after the accession date shall be regarded as import to Romania:

    a) exit of goods in Romania from the temporary admission procedure under which they were placed before the date of accession under the terms provided in paragraph (1), although the legal provisions have not been complied with;

    b) taking out the goods in Romania from the suspensive customs procedures under which they were placed before the date of accession under the terms provided in paragraph (1), although the legal provisions have not been complied with;

    c) closing in Romania an internal transit procedure initiated in Romania before the accession date, for the purpose of the supply of goods for a consideration in Romania before the accession date, by a taxable person acting as such. The supply of goods by mail shall be considered for this purpose an internal transit procedure;

    d) closing in Romania an external transit procedure initiated before the accession date;

    e) any deviation from or violation of the law, committed in Romania during an internal transit procedure initiated under the terms provided in letter c) or during an external transit procedure provided in letter d);

    f) the use in Romania, as of the accession date, by any person, of the goods supplied to such person before the date of accession, from Bulgaria or from a Community territory, as it was before the date of accession, if:

    1. the supply of goods was exempt or it might have been exempt, under the terms of Article 143 (1) a) and b); and

    2. the goods were not imported before the date of accession, in Bulgaria or in the Community area, as it was before the accession date.

    (3) When there is an import of goods in any of the situations mentioned in paragraph (2), there shall not be any chargeable event of tax if:

    a) the goods are dispatched or transported outside the Community territory, as it was as of the date of accession; or

    b) the imported goods, within the meaning of paragraph (2) a), are not means of transport and are re-dispatched or transported to the Member State from where they were exported and to the person having exported them; or

    c) the imported goods, within the meaning of paragraph (2) a), are means of transport acquired or imported before the date of accession, under the general import conditions from Romania, Bulgaria or another Member State within the Community territory, as it was before the accession date and/or have not enjoyed the exemption from the payment of tax or its refund as a result of export. This condition shall be regarded as met when the date of the first use of such means of transport is prior to 1 January 1999 and the amount of import duty payable is insignificant, according to the provisions of the norms.

ART. 161^2 - Transposed directives

    This title transposes Directive 112, Council Directive 83/181/EEC of 28 March 1983 determining the scope of Article 14 (1) (d) of Directive 77/388/EEC as regards exemption from value added tax on the final importation of certain goods, published in the Official Journal of the European Communities (OJEC) L 105 of 23 April 1983, as subsequently amended and supplemented, Council Directive 2007/74/EC of 20 December 2007 on the exemption from value added tax and excise duty of goods imported by persons travelling from third countries, published in the Official Journal of the European Union (OJUE) L 346 of 29 December 2007, Council Directive 2006/79/EC of 5 October 2006 on the exemption from taxes of imports of small consignments of goods of a non-commercial character from third countries, published in the Official Journal of the European Union L 286 of 17 October 2007, Thirteenth Council Directive 86/560/EEC of 17 November 1986 on the harmonisation of the laws of the Member States relating to turnover taxes - Arrangements for the refund of value added tax to taxable persons not established in Community territory, published in the Official Journal of the European Communities (OJEC) L 326 of 23 November 1986, Council Directive 2008/9/EC of 12 February 2008 laying down detailed rules for the refund of value added tax, provided for in Directive 2006/112/EC, to taxable persons not established in the Member State of refund but established in another Member State, published in the Official Journal of the European Union  (OJEC) L 44 of 20 February 2008.