Fiscal and Accounting Aspects Concerning the Reverse Charge in the Context of Accession to the European Union

Ecobici, N (2007): Fiscal and Accounting Aspects Concerning the Reverse Charge in the Context of Accession to the European Union. Forthcoming in: The Program of the Conference Competitiveness and European Integration, Cluj Napoca, Babes Bolyai University, Romania, October 26-27, 2007

Abstract

As from 1 January 2007 the European Directives are transposed into the national legislation and the European Regulations are truthfully applicable. In the VAT field, the European Directives, as well as the Jurisprudence of the European Court of Justice were transposed into the Fiscal Code, Title VI. Since the accession date, the legislation in the VAT field is repealed and replaced with the legislation harmonized with the Community acquis. The elimination of customs barriers between the 27 Member States of the European Union brings news as concerns the application of the "reverse charge" procedure that is applied in Romania as from the year 2005 for residue transactions and transactions with ferrous and non-ferrous metal waste, with grounds or buildings or building parts or living animals among VAT payers. Thus, starting with1 January 2007, the reverse charge is binding and applicable to all intra-Community acquisitions. At the same time the reverse charge was also applied for imports until 15 April 2007. In this paper I shall present aspects concerning the history of reverse charge in our country, accounting of operations and advantages and disadvantages of application of this procedure in the context of accession to the European Union.

• Item Type: MPRA Paper
• Language: English
• Keywords: Reverse charge, VAT, intra Community acquisitions, Fiscal Code, and imports
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M4 - Accounting and Auditing > M41 - Accounting

References

[1] Fiscal Code, Title VI, Article 1601 simplification measure in the VAT field in order to control tax avoidance.

[2] Government Emergency Ordinance no. 16/2001 on the management of recyclable industrial waste, republished, as further amended and supplemented.

[3] Government Ordinance no. 57/2002 concerning the scientific research and technological development, approved with amendments and changes by Law no. 324/2003, as further amended and supplemented.

[4] Sixth Directive, or Council Directive 77/388/EC of 17 May 1977, on the harmonisation of the laws of the Member States relating to turnover taxes - common system of value added tax: uniform basis of assessment, published in the Official Journal of the European Communities (OJ) no. L 145 of 13 June 1977, with its subsequent changes and amendments.