Form 394: From this month, all operations including those with non-taxable persons have to be declared!
Form 394 will include all operations to / from all companies and individuals, both taxable and non-taxable, beginning with October 2016.
Until September, the form is submitted only for operations with persons registered for VAT purposes, practically being declared the same information as in the previous version. Beginning with this month the information will be more complex and the volume of data to be reported will be significantly higher, with implicitly increased risk of errors.
Form 394 has to be filed for any taxable operation in Romania for which an invoice is issued, including advances, for the operations to which the VAT cashing system or reverse charge is applied, and also for self-invoicing operations and for those that are based on tax bills.
What has to be declared this month?
All operations – deliveries and acquisitions – with all legal persons and individuals, from Romania or from outside it, except for certain types of intra-community operations. The new sections of the statement that have to be filed in are:
- Section D – Summary statement regarding the operations carried out by persons not registered for VAT purposes
- Section E – Summary statement of the operations carried out by taxable persons not established in Romania who are established in another Member State, unregistered and are not obliged to register for VAT purposes in Romania (except declared in 390)
- Section F – Summary statement of the operations carried out by taxable persons not registered and are not obliged to register for VAT purposes in Romania, not established in the European Union
- Section G – Summary statement of the operations realized through electronic cash registers as well as from tax exempted activities.
Note: Until October there was no obligation to declare tax bills. We mention as from January 2017, the first name, name, personal code number or CUI and the complete address have to be declared in form 394 for all invoices issued to individuals, regardless of value.
Thus, the main information declared is for:
- all acquisitions both with persons registered for VAT, and with those unregistered, from Romania or from abroad, except for intra-Community supplies/ acquisitions or intra- Community supplies / acquisitions of services that are subject of declaration 390, and the reporting has to be detailed for each code / tax registration number or personal code number
- invoices used in a certain month, number and series of reversed or canceled invoices and number and series of self-invoices
for acquisitions from persons not registered for VAT purposes in addition to the number of invoices and their value, there have to be declared details of the nature of acquisitions, grouped in: cereals and technical plants, ferrous and nonferrous metals, forest products, buildings, land, other goods, services
- broken down, operations for which simplified invoices and bills have been issued
- in case a VAT refund with reimbursement option has been filed, you have to detail nature of the operations from the period the company asked for VAT refund
- for supplies of taxable goods / services you have also to declare the total amount of the documents issued for operations for which there is no obligation to issue an invoice or a tax bill;
- invoices received during the reporting period, regardless of the date when the chargeability of VAT intervenes
- invoices that have mentioned “reverse charge” or “VAT collection”, regardless the date when the chargeability of VAT intervenes, as well as and the slips of acquisitions of goods, tabs of the notebooks for selling agriculture products in case of acquisitions from individuals
- the total value of simplified invoices and tax bills which fulfil criteria for a simplified invoice if they have enrolled the registration code for VAT purposes of the beneficiary
The statement 394 is the main tool used by the tax authorities for risk analysis. Under these circumstances, the information are confronted with those of your business partners and the types of transactions and the persons involved in the transactional circuit are analyzed in order to trigger fiscal audits.
