Government Decision No. 1336/2023, published on 29 December 2023 in Romania Official’s Journal No. 1196 for amending and supplementing the Methodological Norms for applying Law 227/2015 regarding the Fiscal Code, approved through Government decision no. 1/2016

Recently, Government Decision No. 1336/2023 was published on the Romania Official’s Journal amending and updating the Methodological Norms for applying Law 227/2015 regarding the Fiscal Code.

Among the most notable updated brought by this Government Decision, we mention:

Personal income tax

• Clarifications are made for the application of the provisions of Article 111 of the Tax Code on income from the transfer of real estate properties. Such clarifications, relevant in the specific context of real estate transactions, refer to the taxpayer status, declared value, taxable amount and income tax due, date of acquisition and period of ownership of real estate in various situations, including for transfers by way of contribution to the share capital of a company.

VAT

• Clarifications are brought with respect to the applicability of the 9% VAT reduced rate for the supply of milk powder for newborns, infants and young children and for the supply of cake and biscuits, starting 1st of January 2024.
• Clarifications are brought with respect to the method of determining the quantity of „added sugar” in products, for determining the applicable VAT rate.
• It is clarified that for the supply of food supplements with a quantity of sugar exceeding 10g/100g of product the standard VAT rate is applicable.
• It is clarified that for accomodation in the hotel sector or sectors with similar function the reduced VAT rate of 9% is applicable for the total price of the accomodation which can include also alcoholic beverages, non-alcoholic beverages falling under NC code 2022 as well as food products with added sugar, having a total quantity of sugar of minimum 10g/100g of product.
• Clarifications are brought with respect to the applicability of the 9% reduced VAT rate for the supply of houses as part o the social policy, such as the method of computing the surface of the house, the house limit value, the VAT rate applicable in case of advances related to supply of houses.  

Excise

• The post-packaging operations of already individually packaged harmonised excisable products were defined. These post-packaging operations can be carried out before release for consumption.
• The non-alcoholic beverages subject to non-harmonized excise duties were defined as:
  • beverages falling under CN code 2202;
  • beverages with an alcohol concentration of maximum 1.2% by volume, which fall under CN codes 2204, 2205, 2206 and 2208.
• Those economic activities representing the production of non-alcoholic beverages with added sugar are excluded from the scope of non-harmonized excise duties, in the following situations:
  • non-alcoholic beverages prepared on the spot, where sugar is added at the consumer's request, products that cannot be consumed as such as drinks, as well as drinks prepared on the spot where the amount of sugar cannot be determined at the time of sale;
  • production of non-alcoholic drinks with added sugar within the restaurant and catering services.
• The determination of added sugar, no matter in what quantity, is based on the list of ingredients, and the total sugar level is the one provided in the nutrient content.
• The notification form was introduced for economic operators who produce, purchase from other EU member states, or import non-alcoholic beverages with added sugar that are subject to non-harmonized excise duties.

The EY team is available for further details on the above