Clarifications regarding the application of the specific turnover tax for entities carrying out activities in the oil and natural gas sectors: OG no. 3/2025

The takeaway

Government Ordinance no. 3/2025 (OG no. 3/2025) clarified the scope of the specific turnover tax (ICAS) for Romanian and foreign legal entities operating in the oil and natural gas sectors, starting with the fiscal year 2025 or with the modified fiscal year starting in 2025.

 In detail

OG no. 3/2025 clarified the application of ICAS for Romanian legal entities or foreign legal entities that individually or in a form of association deliver goods, render services on the territory of Romania or deliver goods from the territory of Romania, related to CAEN codes corresponding to the main or secondary activities carried out in the oil and natural gas sectors:

0610 – Extraction of crude oil

0620 – Extraction of natural gas

0910 – Service activities related to the extraction of crude oil and natural gas

1920 – Manufacturing of products obtained by oil refining

3522 – Distribution of gaseous fuels, through pipelines

3523 – Marketing of gaseous fuels, through pipelines

4671 –   Wholesale of solid, liquid and gaseous fuels and derived products

4681 – Wholesale of solid, liquid and gaseous fuels and derived products

4730 – Retail trade of fuels for motor vehicles in specialist stores, or

Retail trade of fuels for motor vehicles, as the case may be

4950 – Transports through pipelines

ICAS is declared and paid for quarters I–IV up to and including the 25th of the month following the respective quarter.

Romanian or foreign legal entities that, during the fiscal year, commence activities corresponding to the CAEN codes above owe ICAS as of the quarter in they are conducted. That includes newly established legal entities. If entities that owe ICAS cease the activities corresponding to the above CAEN codes, they no longer owe this tax as of the quarter following that in which those respective activities are ceased.

Foreign legal entities that individually or in a form of association deliver goods, render services on the territory of Romania or deliver goods from the territory of Romania, conducting activities in the oil and natural gas sectors, and which have not registered a permanent establishment in Romania, owe ICAS. The VT[GM1]  indicator represents the revenues made from the deliveries/provision of services on the territory of Romania or from deliveries from the territory of Romania corresponding to the CAEN codes provided above, established based on the value entered in the customs declaration or in the documents certifying intra-community deliveries. Delivery from the territory of Romania means any operation that involves the removal of goods from the territory of Romania.

Taxpayers who obtain income from the sale of solid fuels, naphthalene, heating oil, lamp oil, hydrogen, lubricating and cooling products, within the activities corresponding to CAEN codes, do not owe specific ICAS turnover tax starting from the quarter in which they obtain these revenues:

4671 –   Wholesale of solid, liquid and gaseous fuels and derived products

4681 –  Wholesale of solid, liquid and gaseous fuels and derived products

4730 – Retail trade of fuels for motor vehicles in specialist stores, or

Retail trade of fuels for motor vehicles, as the case may be

To avoid the risk of non-payment of ICAS, foreign legal entities conducting activities in the oil and natural gas sectors that have not registered a permanent establishment in Romania are obliged to provide a letter of guarantee issued by a credit institution or deposit the required amount at a unit of the State Treasury in favour of the central fiscal body, in compliance with the legal norms regarding the execution of such guarantees. The amount of the guarantee is the equivalent of EUR 1 million euros in Romanian Lei, at the exchange rate communicated by the National Bank of Romania on the date of establishing the guarantee.

The deadline for establishing the guarantee for entities conducting activities in the oil and natural gas sectors prior to the date of entry into force of this ordinance, as provided for in art. 462 para. (16) of the Fiscal Code, within 15 days as of 3 February 2025 (the date of entry into force of this ordinance) and 15 days as of the publication of the order of the president of the National Agency for Fiscal Administration regarding the procedure and conditions for the registration of representatives appointed to calculate, declare and pay ICAS related to the activities described above.

Non-compliance with the deadline for establishing the guarantee can be sanctioned by being prohibited from performing any customs formalities related to ​​the movement of excisable products in the responsibility of legal entities until such time as all obligations have been fulfilled.

The procedure and conditions for registering a representative are to be approved by an order of the president of the National Tax Administration Agency issued within 45 days as of the date of entry into force of OG no. 3/2025.

 [Source: Government Ordinance no. 3/2025 amending and completing art. 462 of the Fiscal Code, published in Official Gazette no. 92, dated 31 January 2025]