Romania To Tax Sales To Scrapyards By 16%

The norms concerning the application of the Tax Code were amended Wednesday by the Government through a decision that clarifies several provisions regarding taxes on profit and income, VAT, excise duties, local taxes, mandatory social contributions.

Aside from taxing scrap sold to metal, paper, glass etc. collection centers, the act expands the category of taxpayers who can join together in a fiscal group, for the purposes of paying VAT. The group may now be made up of taxpayers managed by the same fiscal body; previously, only large taxpayers were allowed to create a single fiscal group.

The members of a fiscal group can file a single VAT return application through their designated representative; there is no need to file individual applications for each member.

The act revises the exemptions from excise payment for ethyl and denatured alcoholic products used to produce goods not destined for human consumption.

The decision also clarifies the way the hotel tax is computed: if local authorities choose to introduce it, a rate of 1% would be charged on the total value of accommodation or the accommodation fee for each day of the tourist’s stay, a value that does not include VAT.