New amendments and additions to the methodological rules on the application of the Fiscal Code: GD no. 1336/2023

The takeaway 

Government Decision no. 1336/2023 (GD no. 1336/2023) brings amendments and additions to the methodological rules on the application of the Fiscal Code, as approved by Government Decision no. 1/2016, in relation to VAT and excise duties.

In detail

We present below the main changes and additions to the methodological rules for the application of the Fiscal Code:

• VAT

Reduced VAT rate for food and beverages

The methodological rules are correlated with the amendments made to the Fiscal Code regarding food and beverages that are exempt from the application of the reduced rate of VAT (namely milk powder for newborns, infants and young children, cakes and biscuits) and the CN codes are established for those exempted foods and beverages.

Regarding the method of determining the total sugar content, it is clarified that:

1. it is determined whether the food has added sugar, regardless of the amount, based on the list of ingredients;

2. the total sugar content is that stated in the nutritional information, and if the total sugar content is expressed in grams / volume unit, the conversion from the volume unit to the mass unit must be made.

The reduced rate of 9% VAT does not apply to food supplements that fall within the exceptions provided for in art. 291 para. (2) lit. e) of the Fiscal Code.

Registration for VAT purposes

For companies that request registration for VAT purposes together with registration in the commercial register, the registration for VAT purposes is considered valid from the date of registration in the commercial register.

Registrations for VAT purposes that were requested together with registration in the trade register in 2023 will be cancelled if the taxpayer does not attend the headquarters of the tax body to collect the registration certificate for VAT purposes within 60 days as of the date of entry into force of Government Decision no. 1336/2023.

During the period in which the courts order the suspension of the execution of the decision to cancel the registration for VAT purposes, the fiscal body registers the taxable person for VAT purposes.

• Excise duties 

The requirements for the constitution of the guarantee have been clarified for movements of energy products through fixed pipelines, both on the national territory and between Romania and the EU territory.

Brought changes to the packaging activities that can take place in a fiscal warehouse, i.e. the post-packaging of excisable products to release for consumption are excluded from the activities that are allowed there.

The notion of non-alcoholic beverages with added sugar that fall within the scope of non-harmonised excise duties is defined as:

a) beverages falling under NC code 2202;

b) beverages with a maximum alcohol concentration of 1.2% by volume which fall under CN codes 2204, 2205, 2206 and 2208.

It is specified that are non-alcoholic drinks with added sugar are not considered drinks for which the consumer decides the amount of sugar added to their content, products that cannot be consumed as such as drinks and drinks prepared on the spot where the amount of sugar cannot be determined at the time of sale.

It is clarified that the production and sale of non-alcoholic beverages with added sugar served in restaurant and catering services do not fall within the scope of non-harmonised excise duties.

Procedures have been established for determining the amount of added sugar and the total sugar level in non-alcoholic beverages subject to non-harmonised excise duties and for how economic operators can calculate their excise duties, taking into account the conversion from the unit of measure for mass to the unit of measure for volume.

The methods have been clarified for determining and calculating excise duties on products intended for smokeless smoking that are subject to non-harmonised excise duties.

Application models and the procedure to be followed in the case of notification/authorisation of economic operators carrying out operations with products subject to non-harmonised excise duties have been introduced, as has the procedure to be followed for refunding non-harmonised excise duties.

Source: [Government Decision no. 1.336/2023 for the amendment and additions of the Methodological Rules on the application of Law no. 227/2015 regarding the Fiscal Code, approved by Government Decision no. 1/2016, published in the Official Gazette no. 1196 dated 29 December 2023]