which VAT to charge if based in Romania

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wykthorr

Free Member
May 26, 2009
160
21
Romania
  • #1
    Hi,

    We're a company based in Romania and looking to do business with UK companies. We sell web development solutions.

    The problem is I wasn't able to find out which VAT should we charge on our work. UK VAT or Romanian VAT. I've asked quite a number of people nobody seems to know for sure.

    Any help would be much appreciated.
     
    W

    wykthorr

    Free Member
    May 26, 2009
    160
    21
    Romania
  • #3
    elainec100 said:
    If you are a Romanian based business then you need to conform with the tax laws there.
    Click to expand...

    Well given we're based in Romania that's a lot easier said than done. I will ultimately have to get a signed paper from them (they don't seem to know how it works for sure either), but I was wondering whether anybody knows about intra-EU VAT regulations. Since we're part of the EU I presume we have to go for the same set of rules.
     
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    RAL

    Free Member
    Aug 31, 2008
    722
    177
    Surrey & London
  • #7
    wykthorr said:
    Hi,

    We're a company based in Romania and looking to do business with UK companies. We sell web development solutions.

    The problem is I wasn't able to find out which VAT should we charge on our work. UK VAT or Romanian VAT. I've asked quite a number of people nobody seems to know for sure.

    Any help would be much appreciated.
    Click to expand...

    The information you provided is not enough. You need to provide further information, such as where this work will be carried out? What will you be delivering? How will you be delivering? Are your customer vat registered?
    Are you vat registered?
     
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    wykthorr

    Free Member
    May 26, 2009
    160
    21
    Romania
  • #8
    We're a Romanian company working in Romania
    We provide web development solutions for SMBs. Since everything is digital I guess there's no much to be delivered. There might be occasional situations when we might ship prints to the customer, but it's quite unlikely.
    We are VAT registered in RO and our clients will probably be VAT registered in the UK. As an extra piece of information if helpful VAT in RO is 19%.
     
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    3pic

    3pic

    Free Member
    Jun 20, 2007
    608
    183
  • #9
    My understanding is that Romanian TVA has the same rules as the UK in terms of intra EU services (I know for sure that the Romanian authorities do operate the reverse charge/place of supply rules for land/intangible services such as consultancy)

    The place of supply of web design would best be described as consultancy/intangible. Where an EU VAT registered business supplies such services to another EU VAT registered business, for a business purpose, the place of supply is deemed to be where the customer is located. The customer accounts for VAT in their own country.

    That would mean you zero rate the sale in Romania. The reverse would be true if this was a UK based web designer supplying into Romania, the UK firm would zero rate the sale and the Romanian customer would account for VAT in their country.

    I'd still recommend checking this out locally in Romania with a VAT specialist/Accountant as each country does like to slip in a little quirk or two just to keep things interesting.
     
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    buderuss

    Free Member
    Jul 23, 2009
    2
    0
  • #10
    Hi,

    I'm a romanian accountant, and i try to help you.

    Here we have to options:

    -informatice services
    - delivery of Informatice software on floppy, accompanied by a license.(delivery of good Fiscal code art 128.(150)

    For the second, if de company is VAT payer in Romania. You need to recieve
    code of VAT registration form
    English customers, If you don't receive (customer in non VAt Payer) invoive must to be with 19% Vat.Otherwise invoice is without vat.

    The first, for servicesI need more details.I hope I was helpful.


    3pic said:
    My understanding is that Romanian TVA has the same rules as the UK in terms of intra EU services (I know for sure that the Romanian authorities do operate the reverse charge/place of supply rules for land/intangible services such as consultancy)

    The place of supply of web design would best be described as consultancy/intangible. Where an EU VAT registered business supplies such services to another EU VAT registered business, for a business purpose, the place of supply is deemed to be where the customer is located. The customer accounts for VAT in their own country.

    That would mean you zero rate the sale in Romania. The reverse would be true if this was a UK based web designer supplying into Romania, the UK firm would zero rate the sale and the Romanian customer would account for VAT in their country.

    I'd still recommend checking this out locally in Romania with a VAT specialist/Accountant as each country does like to slip in a little quirk or two just to keep things interesting.
    Click to expand...
     
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