(June 25, 2010) On June 23, 2010, Romania published an Emergency Ordinance designed to combat tax evasion and improve the collection of taxes (Ordinance No. 54, Official Gazette No. 421). Its provisions come into force at various times between the date of publication and August 2010.
In the final, published form the Ordinance does not include a proposal that had been in a draft version to charge value-added tax, upon their entry into Romania, on an array of products, including cereals, vegetables, fruit, meat, fish, flowers, sugar, and construction materials. The provision was dropped as incompatible with European Union law, as was a plan to re-introduce excise duties on luxury products. The Ordinance does, however, retain a reverse charge mechanism for a restricted list of products, such as cereals, vegetables, fruit, meat, sugar, and bread. This provision is subject to EU Council approval; if approved, it will be in force from ten days after the approval until December 31, 2011.
Other provisions include establishing sanctions for tax evasion, introducing restrictions on the setting up of warehouses and duty-free shops, increasing the excise charge on cigarettes as of July 1, 2010, and adding administrative obligations for companies importing tobacco products.
Another step taken under the Ordinance is the establishment as of August 1, 2010, of a “Registry of Intra-Community Operators,” which will include taxable persons and non-taxable legal persons operating within the European Community.
The Ordinance also includes a provision on fiscal procedures, stating that measures of forced execution can be extended to third parties of insolvent debtors, if those third parties have joint liability with the debtors. (Oana Popa, Romania:New Measures to Combat Tax Evasion Enacted, TAX NEWS SERVICE (June 24, 2010); Oana Popa. Romania: New Measures to Combat Tax Evasion Proposed, TAX NEWS SERVICE (May 24, 2010), both from the International Bureau of Fiscal Documentation online subscription database.)