394 return – Operations with non-resident affiliates

Regarding the amendments to declaration 394 regarding the obligation to declare transactions with related parties, should those with external related parties also be declared? We are in the situation where we have transactions with affiliated parties, but these, all of them, are external companies and we declare the transactions with them in 390.

Acquisitions of goods or services from non-residents may be operations that are the subject of declaration 394, when the operations are taxable in Romania.

However, according to the Instructions for completing form 394, the intra-community acquisitions of goods and services for which there is the obligation to register in declaration 390 are not included in this form.

Without any further clarification, we consider that we cannot take into account the operations carried out with affiliated persons if they are not the object of form 394. The respective tick must refer to the operations declared within the form.

In conclusion, our opinion is that the box YES is checked if transactions have been made with affiliated companies for which the place of supply / delivery is considered to be in Romania, the beneficiary is the person obliged to pay VAT (for acquisitions), but only if these transactions do not were declared in form 390.

If the transactions in question have been declared in form 390, they are not the subject of form 394 and NO will be ticked next to the box “Transactions were performed with affiliates during the reporting period”.

Your Tax Representative

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Andreea Bezdedeanu

  • Junior Consultant
  • Bucharest

Andreea is a Tax Consultant specialized in Environmental Fund , VAT compliance and Intrastat reporting. She holds a BA in Finance and International Economic Relations from the Academy of Economic Studies in Bucharest and she is fluent in English. Andreea assists the clients in the process of VAT registration, VAT compliance and Environmental fund issues as well as other various advisory matters.