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Question about Tax regulation

Hi, Sorry for bothering you with such a subject ;) I'll make it short - promise!

How does it works when a company (A) abroad (for example in Spain) is hiring a local company (B) which is located in Romania. Is company (B) responsible to provide company (A) a prober invoices for their services charges? And what about the current Romania tax rate of 20%? Does company (A) which is based outside Romania to pay this tax?

Thank you :)

Hi,

Yes, company B is responsible to provide company A prober invoices for their services charges.
Since in your example both companies are part of the EU you should know company B has to be registered in "Registrul Operatorilor Intracomunitary" in order to invoice company A.

The tax of 20% is the VAT.

Regarding VAT for services between 2 EU companies you have the following situations:

- company B is not VAT payer: company B won't issue invoice with VAT
- company B is VAT payer: company B will issue invoice without VAT only if company A provides a valid VAT number as well. VAT numbers can be checked here: http://ec.europa.eu/taxation_customs/vies/
-  company B is VAT payer: company B will issue invoice with VAT if company A does NOT provide a valid VAT number as well.

Hope this helped!

Have a nice evening!

Hi, WOW! Thanks you so much for your speedy answer :) May I ask you for your occupation or did you find all this information on the web?

Last question about the VAT - really the last one ;)

A = Company based in Spain
B = Company based in Romania (Legal form: S.R.L)

In case company (B) is NOT providing a correct VAT Number which is related to S.R.L of company (B) - Company (A) does not have to pay VAT, right? Which means also Company (B) is not eligible to bill Company (A) the VAT of 20%.

Following situation:
Company (B) just sent company (A) an Invoice incl. VAT of 20%. However, Company (B) does not provide any kind of VAT Number. Not visible on Invoice. Not even after a request thru email.

In my opinion there is something fishy...

Hi!
You're welcome. I am legal consultant.
In the situation described I wouldn't pay any amount written there.
Have you checked on the site I gave you if company B has VAT number?
This is the site in English: http://ec.europa.eu/taxation_customs/vies/
It's very easy to find out if the company has or not VAT no.

If it turns out VAT no. is not valid, return the invoice as incorrect. Ask for another with the correct amounts to pay.
You should also check the Agreement between the 2 companies. It is always advisable to have an agreement. Do you have an agreement?

Good morning,
Company (A) has just an agreement for the menu only. And it's just a little piece of the whole event costs. So far Company (A) has paid the whole "net" amount exempt 20% VAT -  without receiving any Invoices!

Company (A) has informed Company (B) that no further payments will be made (open balance, VAT only) without getting prober Invoices for all payments they have done so far.

Answer Company (B):
Btw "a one man show": ...if you don't pay the final amount I will not release the Photo & Videomaterial...

Company (A) has already paid for the Photo- and Videographer month ago (in full!) - documented by email history and bank statements. Event held in August 2016.

Any chance to lookup a VAT of of a Company by searching with the company name only?

I really appreciate your assist! :)

Send me the full and correct company name by PM.
I can find out the fiscal code and then research for VAT no.

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