Last updated: 4 June 2015
NEW FISCAL RULES AS OF JUNE 1ST 2015
June 1, 2015 marked the entry into force of several fiscal measures, among which the ones we presented to you in our article of April 30, regarding the taxation of tips.
The Government has been preparing in the last few months a measure aimed, in its opinion, at increasing internal consumption and productivity, namely the reduction of VAT to 9% for the delivery of food products. Despite the criticism received by this measure from the International Monetary Fund (FMI), which invoked its negative impact over the revenues of the Romanian State, the VAT reduction is already applicable as of June 1, 2015, following the adoption of Emergency Ordinance no. 6/2015 (Official Journal no. 250 of April 14, 2015). The changes brought by this Ordinance, as well as the new measures regarding the taxation of tips, adopted by Government Decision no. 367/2015 (Official Journal no. 373 of May 28, 2015) amending the Fiscal Code Implementing Regulations, are briefly presented to you hereinafter.
REDUCED VAT FOR FOOD DELIVERY
As of June 1, 2015, the VAT applicable to the delivery of food products will be of 9%, following the adoption of Emergency Ordinance no. 6/2015.
In accordance with the aforementioned Emergency Ordinance, the 9% VAT is
applicable, among others, to the delivery of food products, including beverages (except for alcoholic beverages), destined to human or animal consumption; plants or ingredients used in food preparation. The measure is applicable starting from June 1 and after the entry into force of Government Decision no. 367/2015, amending the Fiscal Code Implementing Regulations (Official Journal no. 373 of May 28, 2015), the food products to which the reduced VAT is applicable were listed and identified by their tariff codes.
For example, the 9% VAT is applicable, among others, to the delivery of meat, live domestic animals and animal products, fish, shellfish, milk and dairy products, ediblefruit, coffee, tea, mate and spices, cereals, oleaginous seeds and fruit, sugars and sweets, cocoa and products based thereon etc.
TAXATION OF TIPS
Ordinance no. 8/2015, which entered into force on April 28, 2015, did not contain any provision regarding the taxation of tips cashed by economic operators, even if the draft of the aforementioned Ordinance provided a 16% tax on profits for the tips cashed, 3% for microenterprises.
Nevertheless, many economic operators had already paid a 16% tax on tips.
From now on, as provided by the amended Implementing Regulations, tips which are not distributed to employees are subject to 24% VAT for economic operators registered for VAT purposes. However, if tips are granted to employees, they have to pay a 16% tax on revenue, given that tips are regarded as “revenues obtained from other sources”.
Nonetheless, we are reminding you that the provisions obliging economic operators to issue a separate receipt for tips will most probably be repealed this month, taking into account the declarations of the Ministry of Finance, after consultations with the representatives of the hotel and catering sector.