About buying equipment for own company.

I assume that many of you here have companies and I have a one too but I never had a company before, here nor in my home country so I would be grateful if you could tell me one thing.
I know it is a question for accountants but I just need some basic guidance whether it is possible or not.
In my country when we buy equipment necessary for our company to function(cellphone, computers...) the price of the equipment is tax deductible as it is seen as an expense. We also get the vat tax payed for the equipment back at the end of the fiscal year.

My question is- can I get tax deduction and vat back in Romania for the equipment I buy for my company?
I am thinking about buying certain items as a computer and a cellphone.

I believe it's possible, though you are right in your statement that it is a question for an accountant, as there can be several factors or implications involved and laws change often.  If you have a business, you should have an accountant that handles your statements, why not ask them?

Romaniac Experts Team

Thank you information. The laws change often...Oh, It's not fantastic.
Actually I already asked my accountant same thing. But unfortunately I didn't get answer yet. So I asked here. Because I hoped to buy it this weekend. I will wait the reply from the accountant. Multumesc frumos!

There are 4 scenario’s

1. Your company is a SRL micro-intreprindere and pays tax on turnover (not exceeding 500.000 euro) between 1%-3% and is not registred for VAT (this is only mandatory once you exceed 220.000 ron turnover)

2. Your company is a SRL micro-intreprindere and pays tax on turnover and is registred for VAT from the start (“opt in”)

3. Your company is a standard SRL, paying 16% tax on profit - not turnover - and is not registred for VAT (in case turnover < 220.000 ron)

4.Your company is a standard SRL, paying 16% tax on profit - not turnover - and is registred for VAT

On 1, your expenses dont count against the corporation tax, but if they are registred as expenses they will have an effect on the accountancy profit for dividend purposes. Expenses which are registred as “including VAT” (invoice for a computer for instance) therefore dont allow you to claim back VAT as the VAT amount is registreded also as an expense not a deductible.

On 2, the same as 1 except you can deduct the VAT (depending on your situation this does not necessarily mean a refund as it is set againts payable and receivable VAT)

On 3 the expenses lower the tax burden on tax on profits as you are registering the computer invoice as an expenditure. If the company is not registred for VAT the whole invoice is considered an expense while you can not deduct VAT

On 4, the same as 3 but you can deduct the VAT on the expenses invoices.

I am not an accountant and maybe I have missed something, but this is how I have understood matters

Thank you for the useful information.
I understood that I can't get tax deduction in my case.
I really lucky for getting the information thanks to you.

Thank you very very much.

You are welcome.

New topic

Expatriate health insurance in Romania

Free advice and quotation service to choose an expat health insurance in Romania

Moving to Romania

Find tips from professionals about moving to Romania

Travel insurance in Romania

Enjoy stress-free travel to Romania