A fiscal representative in Romania is appointed when a taxable entity registered in an EU country other than Romania or in a non-EU country has fiscal and VAT obligations following its commercial activities in Romania.
The fiscal representative is tasked with handling the VAT compliance and payments with the Romanian authorities. If the taxpayer is a non-EU legal entity, the requirement to appoint a fiscal representative in Romania is mandatory.
Our tax lawyers in Romania assist foreign business owners who want to start doing business in the country and are looking to sort out their tax and fiscal compliance requirements. In this article, you will find out more details about the fiscal representative’s role, however, those interested can reach out to our team to receive answers to specific questions.
Ways in which a Romanian fiscal representative can assist you
The role of the fiscal representative in Romania is clearly linked to meeting the ongoing reporting and tax requirements in the country. Our team lists some of the most important issues handled by the Romanian tax representative:
- VAT registration with the Romanian authorities according to law;
- VAT return submissions as per the current deadlines;
- VAT payments on a monthly basis (or quarterly for some taxable persons, according to their annual turnover);
- Handling the reverse change mechanism, as applicable.
Only one fiscal representative in Romania is appointed per each company that has to follow VAT reporting and payment obligations.
Foreign business owners may appoint any taxable person established in Romania to fulfil this role, however, they cannot designate more than one tax representative in Romania (and appoint limited commitments to each one).
If you would like to know how to get your business started in Romania, our Romanian lawyers can answer your questions.
How to appoint a fiscal representative in Romania
The appointment of a tax representative in Romania is done via a mandate, concluded in writing and authenticated by a notary public. The following are essential:
- The mandate is accompanied by a statement issued by the appointed representative, indicating that he accepts the role;
- The mandate contract included information about the identities of the parties (the taxpayer appointing the fiscal representative and the identity of the representative);
- Information on the contract’s period is offered in writing, along with any clauses that may lead to its termination.
The Romanian tax representative is jointly and severally liable for the tax payment obligations that result from the conclusion of the agreement.
Once the appointment is finalized, the fiscal representative in Romania will undertake the process of filing the VAT returns and making the proper payments to the tax authority overseeing the area in which the Romanian tax residence is established.
Our lawyers offer assistance with fiscal and tax compliance matters but also for cases involving divorce in Romania or buying property in Romania.
We remind investors in Romania of the current VAT rates:
- 19% standard rate applicable to many types of goods and services;
- 9% VAT rate for goods including medicines for human and veterinary use, certain foods and beverages, hotels and similar accommodation, restaurant and catering services, and others;
- 5% rate for books, newspapers, magazines, etc., access to museums, castles, of zoos, the supply of thermal energy (to certain clients), and in other cases;
- VAT exempt goods and services are also in place, for example international passenger transport.
Upon request, our attorneys in Romania can offer more in-depth information about the VAT reverse charge mechanism and other details.
Contact our law firm in Romania for more information about the role and appointment of the fiscal representative and other ways in which our attorneys can help you.