Tax treatment of non-transfers

Abstract

Romania's accession to the European Union has required significant changes in many fields of activity, the field of taxation is one of the most affected as taxation is fully harmonized with the European laws after January 1, 2007. Therefore, the export and import concepts disappeared in the relationship between the Member States, being replaced by new concepts such as intra-Community acquisition (instead of import) and intra-Community supply (instead of export). Given the intra-Community commercial transactions and hence their taxation, in this article I intend to address the tax treatment of non-transfers. I started from the fact that that the proper determination of tax treatments specific to intra-Community commercial transactions is of particular importance in  stablishing the reporting and payment obligations concerning the value added tax for entities from different EU Member States, significantly affecting the registration procedure in accounting of such transactions. To clarify the tax issues in terms of value added tax, I found it necessary, after identifying the operations considered as non-transfers, to answer several questions based on which the tax treatment of such operations will be determined, questions that relate to the taxable person, taxable operation, the place of acquisition, the exemption or not of the operation and the obligation to pay VAT. For this I took into account several specific situations that arise in trade relations between EU Member States which fall within non-transfers, examples that allowed some conclusions to be drawn on the tax issues arising in intra-Community trade relations.