In the Official Gazette No. 630 of June 28, 2021, was published GEO 59 for the amendment and completion of Law No. 227/2015 regarding the Tax Code.
The present Emergency Ordinance introduces new special treatments and simplification methods in the for VAT.
Here are some general concepts and aspects that will help to understand the special schemes introduced.
It facilitates the supply of goods to the European Union (domestic deliveries and intra-Community distance sales) by a taxable person not established in the European Union to a non-taxable person.
The taxable persons who make intra-Community distance sales have the option to apply the new VAT system in order to pay the VAT due in other Member States to only one Member State ('MS'), or they may register in each MS where the shipment of goods ends in order to pay the respective VAT.
The GEO 59/2021 mentions 3 special VAT schemes for distance sales:
1. NON-EU One Stop Shop (OSS) – Art. 314 Tax Code
2. EU One Stop Shop (OSS) – Art. 315 Tax Code
- If the ceiling is NOT exceeded, the place of supply is in the country where the taxpayer is established and therefore the VAT of that country is applied
- If the ceiling is exceeded, the taxpayer has 2 options: it registers in each MS where VAT is due or applies the OSS regime and pays VAT only in one state for all these transactions, and the respective MS will transfer the amounts to each of the other states in which the tax is due
3. Import of low-value goods
3.1. IOSS regime (art. 315^2)
3.2. Special mechanism for declaring and paying VAT on import (Article 315^3)
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