What is the import of goods?
- The entry on the territory of the European Union of goods that are not in free circulation within the meaning of art. 29 of the Treaty on the Functioning of the European Union;
Products originating in third countries, for which import formalities have been completed and for which customs duties and charges having equivalent effect have been levied and which are not considered to be in free circulation in a Member State have benefited from a total or partial refund of these taxes and duties.
- the entry into the European Union of goods in free circulation, coming from a third territory, which is part of the customs territory of the European Union (Art. 274 from the Tax Code)
Who is the importer?
The importer is the person in whose name the goods are declared, when the import tax becomes due and who in the case of taxable imports is obliged to pay the tax (Articles 266, points 15, 285 and 309 of the Fiscal Code).
Where is it considered to be the place of VAT taxation of the import of goods?
The place of importation of goods is considered to be in the territory of the Member State in which the goods are located when they enter European territory (Art. 277 from the Tax Code).
When does the generating fact and the exigibility of VAT for the import of goods intervene?
- If the goods are subject to customs duties, agricultural taxes or other similar European taxes, established as a result of a common policy, the chargeable event and the chargeability of VAT shall occur on the date on which the chargeable event and chargeability of the respective European taxes occur;
- If the goods are not subject to the above European taxes, the chargeable event and the chargeability of VAT shall occur on the date on which the chargeable event and chargeability of those European taxes would have occurred if the imported goods had been subject to such taxes;
- If the goods are placed under a special customs procedure, the operative event and the chargeability of the VAT occur on the date on which they cease to be placed under such a procedure (Art. 285 from the Tax Code).
What is the VAT tax base for the import of goods and what does it include?
The tax base for the import of goods is the customs value of the goods, to which are added any taxes, duties, commissions and other taxes due outside Romania, as well as those due as a result of the import of goods into Romania, except VAT to be paid. be perceived.
The tax base includes:
- Ancillary expenses, such as commissions, packaging, transport and insurance expenses, which occur up to the first place of destination of the goods in Romania, insofar as these expenses were not included in the tax base established according to par. (1), as well as those deriving from the transport to another place of destination in the European Union, in case the respective place is known at the moment when the generating fact occurs (Art. 289 from the Tax Code).
How is the exchange rate established for the import of goods?
If the elements used to establish the tax base of an import of goods are expressed in foreign currency, the exchange rate shall be established according to the European provisions governing the calculation of the customs value.
What is the VAT rate applicable for the import of goods?
The VAT rate applicable for the import of goods is the rate applicable on the Romanian territory for the delivery of the same good.
VAT exemptions related to the importation of goods
The following transactions are exempt from VAT, among others:
- The import and intra-community acquisition of goods whose delivery in Romania is in any situation exempt from tax inside the country;
- The definitive importation of goods which fulfill the conditions for exemption provided for in Council Directive 2009/132 / EC of 19 October 2009 and Council Directive 2006/79 / EC of 5 October 2006; (MFP Order 105/2016)
- The import of goods carried out in Romania by international bodies, recognized as such by the Romanian public authorities, as well as by their members, within the limits and under the conditions established by the international conventions establishing these bodies or by the headquarters agreements;
- The import of goods carried out in Romania by the armed forces of the foreign NATO member states, for their use or of the accompanying civilian personnel or for the supply of the villages or canteens, in case these forces take part in the joint defense effort;
- The re-importation of goods in Romania, carried out by the person who exported the goods outside the European Union, if the goods are in the same condition as they were at the time of export and if the respective import benefits from exemption from customs duties;
- The import of gold made by the National Bank of Romania;
- Import of investment gold.
VAT exemptions for the provision of services related to the import of goods
- The provision of services, including transport and ancillary transport services, if they are directly related to the import of goods and their value is included in the tax base of imported goods;
- The provision of services performed in Romania on movable goods purchased or imported for processing in Romania and which are subsequently transported outside the European Union by the service provider or by the client, if he is not established in Romania, or by another person on behalf to any of them.
Special exemptions related to international trafficking in goods
The following are exempt from VAT:
- The import of goods to be placed under VAT warehousing;
- Imports of individual protective masks and medical ventilators for intensive care, carried out by the responsible public institutions, for the establishment of rescEU – capacity reserve of the European Union, until October 1, 2020 based on the declaration on own responsibility of the beneficiary institution, signed by its legal representative, which shall be submitted to the competent customs body at the time of import;
- Goods imported to combat the effects of the COVID-19 epidemic during 2020 to be released for free circulation by or on behalf of state organizations, including state bodies, public bodies and other bodies governed by public law or by or on behalf of to charitable or philanthropic organizations authorized by ANAF through its subordinate units to benefit from such an exemption.
Payment of vat related to the import of goods
The person obliged to pay VAT for the import of goods is the importer. VAT for imports of goods, except for duty-free imports, is paid to the customs body in accordance with the regulations in force regarding the payment of import duties.
There is NO effective payment to the customs bodies by the taxable persons normally registered for VAT purposes, according to art. 316, who obtained a deferral certificate from payment, under the conditions established by MFP Order 4121/2015.
These persons highlight the VAT related to the goods imported in the VAT return (form 300) both as the collected tax and as the deductible tax (lines 7 and 22), within the limits and under the conditions established in articles 297 – 301 of the Fiscal Code.
VAT deduction related to the import of goods – Conditions for exercising the right of deduction
For VAT paid for the import of goods to have:
- Import customs declaration;
- The finding document issued by the customs authorities, mentioning the taxable person as an importer of the goods from the point of view of VAT;
- Documents certifying the payment of VAT by the importer or by another person in its account.
The VAT will be registered in the VAT return as a deductible tax at lines 24-26, as the case may be, depending on the applicable VAT rate. [Line 24 – “(…) the tax base and the tax related to the imports that do not fall within the provisions of art. 326 para. (4) and (5) of the Fiscal Code, for which the due date occurs during the reporting period ”]
For VAT due for the import of goods, for which a certificate of deferral of VAT payment was obtained, to hold the import customs declaration or the ascertaining act issued by customs bodies, mentioning the taxable person as importer of the goods for VAT purposes and the amount VAT due. The VAT will be registered as the tax collected in the statement related to the fiscal period in which the exigibility arises.
The right to deduct the VAT related to the import of vehicles owned or used by the taxable person is limited to 50%, if the vehicles are not used exclusively for the purpose of economic activity.
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.