Legislation covering different types of sales taxes which apply to the material being sold, including selling material as growing forest (standing stock sales). Risk relates to situations where products are sold without legal sales documents or far below market price resulting in illegal avoidance of taxes.

  • Full legal title, and reference to relevant Chapter, Section or Clause as appropriate
  • Hyperlink to Applicable legislation (in English where available)

Law 227 / 8 September 2015 Fiscal Code (Chapter VII): http://legislatie.just.ro/Public/DetaliiDocument/171282

Law 46/2008 republished in 2015 Forestry code (Art. 126): http://legislatie.just.ro/Public/DetaliiDocument/170527

Ministry of Public Finances;

National Agency for Fiscal Administration (ANAF)

Government sources

Mfinante.ro (N.Y): Ministerul Finanțelor a publicat normele de aplicare a noului Cod Fiscal (General clarifications about the Methodological norms for the application of the Law regarding taxes). Available at: http://www.mfinante.ro/acasa.html?method=detalii&id=120035

Non-Government sources

Infotva.ro (2015): Taxarea inversa pentru livrarea de materiale lemnoase. Se aplica masurile de simplificare pentru livrarea pomilor de Caciun? [Online) 15 July 2015. Available at: http://infotva.manager.ro/articole/infotva/taxarea-inversa-pentru-livrarea-de-materiale-lemnoase-se-aplica-masurile-de-simplificare-pentru-livrarea-pomilor-de-caciun-9077.html. [Accessed 14 November 2016].

Overview of Legal Requirements

The following products are not subject to value added taxes: logs or rough wood, planks, boards, strips, beams, sawn wood, processed wood (assortments from cutting operations).

Description of risk

After the invoice is registered, there is practically not possible to avoid payment of taxes. All taxes based on invoices are calculated by special programmes (electronic accounting records, online statements, etc.) and their collection is mainly based on an electronic system. The system is considered to be well implemented. For standing stock and wood materials VAT are not applicable.

Risk conclusion

This indicator has been evaluated as low risk. Identified laws are upheld. Cases where law/regulations are violated are efficiently followed up by the authorities and/or by the relevant entities taking preventive actions.