| The Romanian excise duty legislation is almost in line with the EU Directives regarding excise duty. However, certain changes to the current legislation will be introduced before the accession date. This is not only as a consequence of the fact that no intra community provisions were included (not needed until the Accession), but to the different approach of the Romanian legislation as compared to the EU's. |
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| It will be necessary to bring the Romanian legislation regarding excise duty in line with the EU Directives. In particular, the changes (where needed) mainly refer to issues such as: |
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Creating a system based on which the suspensive arrangement covers manufacture, storage and |
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movement of the excisable goods by implementing new control procedures on trade and movement of the excisable goods and by introducing a new tax warehouse regime; |
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Adhering to the minimum EU excise duty rates (unless a derogation applies); |
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New provisions for excisable goods subject to marking; |
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Implementing direct refund of excise duty; |
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New concepts – fiscal representative, registered and non-registered traders; |
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New compliance rules. |
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| In view of the necessary changes that will come into force upon EU accession, PwC indirect tax team may help companies operating in Romania with a broad range of services as mentioned below. Our assistance consists in providing detailed information on the impact of changes and how to prepare for them. An awareness of the imminent changes will help companies initiate discussions with decision makers and accelerate implementation of the regulations in the Romanian legal framework. |
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| Furthermore, knowledge of the future structure of excise duty regulations will enable companies in industries in which excise duty is an important business factor to plan future tasks. |
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| Excise duty suspension (tax warehouse) |
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| The tax warehouses have been implemented in the European Union for more than 10 years based on the EU Directives. In Romania , the concept of tax warehouse has been implemented since 1 January 2004 . |
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| The EU Directives on excise duty only create a mutual framework for manufacturing, distribution and transport to ensure the free movement of excisable goods. However, please bear in mind that the operational rules and control procedures are established by each member state. Thus, the conditions under which the tax warehouse operates as well as the day-to-day operational rules differ significantly between the member states. This is also the case for Romania . |
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| However, the main rules regarding the tax warehouse are so implemented, in all member states that it applies, for the manufacturing and storage of excisable goods under suspensive arrangements from the excise duty perspective. The same applies to the transportation system under suspension regime for excise duty purposes (transport under an administrative accompanying document) which ensures that the excisable goods can also move within a member state or between member states without payment of excise duty. Therefore, the excise duty becomes due when the excisable good is release for consumption. |
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| How can we help you? |
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| In response to the need to prepare companies operating in the Romanian market for the changes resulting from EU integration, we offer comprehensive advisory services that cover: |
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Interpretation and explanation of the provisions of the EU Directives regarding the excise duty; |
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Presentation of the practical implications for individual companies related to establishing and using |
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tax warehouses and transportation under suspensive arrangements; |
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Conduct and assist you in individual discussions with representatives of the Ministry of Public |
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Finance to obtain a favourable effect on the development of future provisions governing the operation and regulation of tax warehouses; |
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Workshops to address issues faced by companies in specific sectors due to the nature of their |
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activities. |
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| Together with your representatives, we may analyse the most important issues relating to the implementation of the tax warehouse regime, taking into account: |
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The specific (local) rules for setting up and operating the tax warehouses; |
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Administrative and documentation requirements that must be fulfilled by companies establishing tax |
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warehouse; |
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The necessary steps to be followed in order to obtain the tax warehouse authorisation. |
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| We may also conduct and assist in individual discussions with the representative of the tax authorities to obtain a favourable effect on the development of future provisions governing the operations and regulation of the tax warehouse system. |
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| For further information please contact one of our experts in the enclosed listing or your usual PricewaterhouseCoopers representative. |
