Tax: Romania

Romania has no sales tax. With regard to VAT, under Romanian tax law the supply of an aircraft is, generally, a taxable operation subject to VAT at a rate of 19%, which is due by the purchaser.  However, in case the aircraft is to be used mainly in international air transport of persons and/or goods against payment the following transactions are VAT exempt: delivery, modification, repairing, maintenance, leasing, rental of aircraft, as well as delivery, leasing, rental, repairing and maintenance of equipment incorporated or used on the aircraft.  

As mentioned above, Romania has no sales tax. With regard to VAT, shall be considered taxable an intra-community acquisition of new transportation means (including aircraft) with the exemption of aircraft used by companies who are mainly performing international transportation of persons and or goods against payment.  

Under Romanian fiscal code [art. 293 para. 1 letter a)] is VAT exempt “the import and the intracommunity acquisition of goods whose delivery in Romania is exempt from value-added tax inside the country;” Thus, shall be VAT exempt the intra community acquisitions of aircraft made by aviation companies who are mainly  performing international transportation of persons and/or goods against payment.  

In case the purchaser is a foreign entity who will export the aircraft to another country there is no sale tax and the operation is VAT exempt under the rule related to aircraft used by aviation companies who are mainly performing international transportation of persons and/or goods against payment; the proof of export is compulsory.  

No, although see above if an aircraft is sold for export and is not otherwise exempted from VAT the seller must obtain proof of export or it will be liable to pay VAT at the rate of 19%.

Under Romanian fiscal code [art. 293 para. 1 letter a)] is VAT exempt “the import and the intracommunity acquisition of goods whose delivery in Romania is exempt from value-added tax inside the country;” 

In the case of aircraft used by airlines mainly engaged in international passenger and/or goods transport, are VAT exempt the following operations: delivery, modification, repair, maintenance, leasing and rental of aircrafts, as well as the delivery, leasing, rental, repair and maintenance of the equipment included or used on an aircraft. 

No custom duties are payable on the import of an aircraft in Romania.  

No

Administrative taxes are paid to Romanian Civil Aeronautical Authority when registering an aircraft. Depending on the total weight of the aircraft the registration fee range between EUR 90 plus VAT to EUR 180 plus VAT.  

In accordance with Romanian Tax Law are exempt from excise duty products supplied on board an aircraft or a ship during an air or sea voyage to a third territory or to a third country shall. 

Furthermore, art. 399 para. 1 let. a) of Romanian Fiscal Code provides that shall be exempt from the payment of excise duties energy products delivered for use as a fuel for aviation, other than private aviation tourism. Private tourist aviation is understood to be the use of an aircraft by its owner or by the natural or legal person holding it for rental or other purposes, for purposes other than commercial and, in particular, other than transportation of persons or goods or services provided for free or for the needs of public authorities.  

The income derived by a Romanian resident (i) from operational leasing and (ii) the interest from a financial leasing agreement is taken into consideration as taxable when assessing the tax on profit. Withholding taxes may apply depending on the qualification of the payments and on the type of legislation applied. Thus:  

The operation of aviation companies are subject to profit tax (16%), but it is allowed tax deductible accruals created for expenses with the maintenance and repairing of the aircraft and related components in  accordance with the programs for maintaining the aircraft approved accordingly by the Romanian Civil  Aeronautical Authority.  Therefore, there is no special tax for aviation but the income obtained from aircraft sale/lease is taken into consideration when assessing the overall profit subject to 16% tax on profit.  

In accordance with our domestic law, are VAT exempt the following: 

(i) International transport of persons [art. 294 para 1 letter g], 

(ii) rendering of services, including the transport and the services related to transport, directly connected with the export of goods [art. 294 para 1 letter c], 

(iii) deliveries of goods that are dispatched or transported outside the European Union by a purchaser that is not established in Romania or by another person on his behalf, with the exception of goods transported by the purchaser that are used for the equipping or provisioning of recreational boats and private aircraft or any private means of transport. The delivery of goods transported in the personal luggage of travelers coming from outside the Community shall be exempt from tax, if some conditions are met [art. 294 para 1 letter b] 

(iv) In the case of aircraft used by airlines mainly engaged in international passenger and/or goods  transport, are VAT exempt the following operations: 

a) delivery, modification, repair, maintenance, leasing and rental of aircrafts, as well as the delivery, l easing, rental, repair and maintenance of the equipment included or used on an aircraft. 

b) delivery of fuel and supplies that are intended for use on aircraft. 

c) supplies of services, other than those provided at point 1 above, performed for the direct needs of aircrafts and/or for its cargo [art. 294 para 1 letter i] 

In accordance with our tax law, the aircraft does not represent an asset subject to depreciation exempt for the case when it is used for economic activities. The expenses for the use of a corporate aircraft must be proved with documents in order to be considered as tax deductible.  

The repayment of capital in case of a loan agreement is not considered as taxable income but the interest part is a taxable income both for residents and for nonresidents:  

By Order 1801/2011 Romania adopted the National Action Plan on reducing greenhouse gas emissions in the field of civil aviation for the period 2011– 2020. This order provides for aviation operators the responsibilities regulated by the Directive 2008/101/EC of the European Parliament and of the Council of 19 November 2008  amending Directive 2003/87/EC so as to include aviation activities in the scheme for greenhouse gas emission allowance trading within the Community.  

By Government Decision no. 455/2011 Romania transposed into domestic legislation the provisions of the Directive 2009/12/EC of the European Parliament and of the Council of 11 March 2009 on airport charges.  

Pursuant to the above mentioned legislation ”airport charge” means a levy collected for the benefit of the airport managing body and paid by the airport users for the use of facilities and services, which are exclusively provided by the airport managing body and which are related to landing, take-off, lighting and parking of  aircraft, and processing of passengers and freight.  

By Government Decision no. 455/2011 are regulated only the common principles for levying airport fares on airports in Romania but not the fares which are established on nondiscriminatory basis by each airport.  

In accordance with Romanian Fiscal Code, energy products delivered for use as a fuel for aviation, other than private aviation tourism is exempt from the payment of excise duties. 

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