How to become a VAT payer?
In accordance with provisions of Art. 112 of the Tax Code, the economic agents, upon fulfilling the conditions specified in the mentioned Article, are obliged or are entitled, depending on the case, to submit the Application for registration as a VAT payer.
The Application for registration as a VAT payer is submitted:
- in electronic format via the AIS “e-Application” or,
- is presented on paper to the Tax Service Department (TSD) within the service area of which the taxpayer has his legal address.
During the examination of the Application for registration as a VAT payer, it is mandatory to carry out on-site tax visit by the tax officials within the TSD.
The tax visit purpose is to establish the fact that the registration threshold as a VAT payer has been reached under the conditions established by the legislation and the non-admission of registration as subjects of VAT taxation based on fictitious transactions.
In accordance with provisions of Art. 129 point 111) of the Tax Code, the tax visit is a procedure of tax assistance, which consists in explaining the tax legislation, with consultative character and/or in establishing some general data about the taxpayer's activity.
The tax visit also involves the following measures:
1) providing explanatory-consultative support regarding tax legislation application;
2) establishing the general data about the taxpayer's activity;
3) identification of deficiencies and prevention of illegal actions;
4) monitoring taxpayers about the cashing discipline or other aspects, by direct observation of the activity.
At the same time, Art.234 para. (4) of the Tax Code stipulates that persons exempt from taxes and/or fees, as well as those who have miscalculated the tax or fee due to incorrect explanations, presented in writing by the STS, are exempted of liability for their reduction, incorrect calculation or non-payment.
For the cases in which the determination of the first tax period regarding VAT takes place within the examination of the registration situations with exceeding the established term, the indicators check shall be performed, taking into account the limitation period for determining tax liabilities, established in Art.264 of the Tax Code.
If the applicant meets the registration conditions, provided in Art. 112 of the Tax Code, the Registration with VAT of the subject of taxation certificate that is printed from the AIS “e-Application” is issued to him.
Failure to meet the conditions for registration as a VAT payer, provided in Art. 112 of the Tax Code, or the finding of clues to assume the transactions fictitiousness, based on which the registration is requested, results in the mandatory issuance of the written notice, signed by the head of the TSD on refusal to register, by stating the reasons underlying it, not before being heard according to the Administrative Code.
The examination of the cases of registration as a VAT payer and the issuance of the Registration certificate of the subject of taxation with VAT through the AIS “e-Application” is to be carried out within a period not exceeding 15 working days, starting with the first following working day after the day on which the application was filled.
If, during the tax visit, the violation of the deadline for submitting the application for registration as a subject of taxation with VAT is found, the following measures shall be taken:
⁃ when completing the chapter “Conclusions and Proposals” of the Tax Visit Report regarding the registration as a VAT payer, there it is laid out the proposal regarding the registration as a VAT payer with the first tax period, established according to the Application of the economic agent and/or according to the tax visit results;
⁃ in the same chapter of the Tax Visit Report there is made the mention regarding the possibility of modifying the first period, because of the tax audit. The deadline for carrying out the procedures related to the tax visit shall not exceed the established deadline of 15 working days.
