Why do you need a fiscal representative?

Companies within EU space and Non-EU companies wishing to carry out economic activities on Romanian territory have fiscal obligations to register in Romania for VAT purposes, and the fulfillment requires the designation of a fiscal representative for all VAT operations carried out on the territory of Romania.

The fiscal or tax representative is mandated to draw up invoices for the non-EU beneficiary, respectively to issue invoices for deliveries of goods and/or services performed by the non-established taxable person in Romania and the EU by applying the tax regime corresponding to the respective transactions.

After completing all VAT carrying operations, the fiscal representative has the obligation to file and deposit the VAT return, and pay and recover the return sums.

What do we do as fiscal representatives?

Details about the competencies of the Contabiz team

Designating a Fiscal Rep.

  • Creating all the documentation and obtaining the VAT certificate

Accounting

  • Performing the accounting registering process

Financial Reports

  • Providing balance sheets, financial situations and others

Issuing Invoices

  • Issuing VAT invoices for related bills

Declarations

  • Creating and Filing fiscal declarations and VAT returns

Recommendations

  • Letters of recommendation from our clients

Collecting VAT

  • Collecting VAT related cash from clients

Paying A.N.A.F. debt

  • Paying or cashing VAT from the VAT return account

Authorization

  • C.E.C.C.A.R. members – Accounting Experts

What you need to know?

Details about key processes

FISCAL REPRESENTATIVE

Throughout his mandate, the fiscal representative will have to:

  • Obtain the VAT Code
  • Open a bank account
  • Issue VAT invoices
  • To cash in from clients or from the VAT beneficiary
  • Keep financial and accounting records over the VAT obligations
  • Report on all VAT related fiscal obligations
  • Pay the fiscal obligations towards the Romanian government
  • Recover VAT related sums when required and applicable

Useful Information

Additional details about accounting

Considerations regarding the fiscal representative

A fiscal/tax representative is required when the taxable transactions of your company meet the following requirements:

  • A good supply or provision of services
  • The goods delivery and provision of services location is in Romania
  • The goods delivery and provision of services are performed by a taxable individual
  • The import is made in Romania

Taxable operations must be:

  • Good delivery
  • Provision of services
  • Goods or services exchange
  • Intra-Community acquisition of goods
  • Import of goods

At an European level, the intra-community delivery represents the delivery of goods which are expedited or transported, from a member state to another member state, by a supplier or person who performs the delivery.

Contabiz Expert Accounting

Avoiding double taxation

Worldwide, all states made an effort to formulate the Convention related to the avoidance of double taxation in order to protect against tax evasion, with the foundation of this measure being constituted by the development of commercial reports, the owning of properties in other sates and the consolidation of economic relations between states.

What you need to know?

 

  • A global convention between all states
  • It addresses individuals and non-resident legal entities
  • The non-resident individual is a person who lives abroad or is in Romania for a period of less than 120 days per year
  • The non-resident legal entity is a person who doesn’t have a permanent headquarters in Romania

The double taxation convention was consigned ever since the 13th century, with the principle of which is accomplished between 2 states, with each state treating every particularity or the taxation regime so that the VAT respects the terms agreed between the said two states and double taxation is avoided.

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