New Rules Linked to the VAT Certificate Renewal
In Romania, there are certain cases in which a company may lose the legal right to operate in the country. The VAT certificate which represents the main proof that a company is registered accordingly may not be attributed to businesses which had a temporarily closed activity. The good part is that companies can get back on the market if they respect several rules which can be explained by our accountants in Romania.
Registering once again for VAT purposes in Romania
For varied reasons, businesses may temporarily close the activities (or are considered inactive by the authorities), and then reevaluate the possibility of getting back on the market. In this matter, the VAT certificate is canceled. Re-opening the business in Romania is possible under certain rules, in accordance with the new provisions of the Fiscal Code for 2017. For instance, the following aspects are mandatory in regaining the VAT certificate:
• fill the new form 099;
• prepare the company’s documents;
• the fiscal authorities will analyze your file and the reasons why the VAT certificate was canceled in the first place;
• the financial risk report will be checked;
• if a VAT application has been rejected, the representative of the company has the possibility to be heard in front of the authorities.
For a proper understanding of the new rules regarding the VAT registration and the taxes imposed, we suggest you talk to one of our Romanian accountants.
How companies can be reactivated in Romania
The mechanism of reactivating the firms back on the Romanian market implies particular conditions which are imposed by the fiscal authorities. The VAT certificate can be renewed if the company registered has no debts, it considers the future financial obligations as imposed by the law, provides the same business address and proves it has solved the issues for which the company was inactive for a period of time.
We invite you to contact our accounting firm in Romania for complete support in matters of taxation, payroll, and related fields.