Order no. 2438/2023 for the approval of the VAT refund procedure related to the purchases of goods or services made by non-profit entities, for which the tax exemption applies according to art. 294 para. (5) letters a) and b) from Law no. 227/2015 regarding the Fiscal Code was published in the Official Gazette, Part I no. 788 of September 1st, 2023.

Why was this procedure necessary?

Law no. 88/2023 regulated the VAT exemption for:

- the construction, rehabilitation, modernization services of hospital units from the public state network, as well as the construction, rehabilitation, modernization services of hospital units provided to non-profit entities registered in the Public Register organized by the NAFA;

- deliveries of medical equipment, devices, apparatus, articles, accessories and protective equipment, materials and consumables for sanitary use, normally intended for use in the field of health care or for use by disabled persons, as well as adaptation, repair, the rental and leasing of such goods, carried out to hospital units from the public state network, as well as those carried out to non-profit entities registered in the Public Register organized by the NAFA.

In the case of non-profit entities, the VAT exemption is applied by refunding the tax related to the purchases of goods or services made by these entities, according to the procedure below:

VAT refund procedure

The VAT refund is carried out by the competent fiscal body in whose tax records the non-profit entity that has the right to request the refund is registered.

In order to refund the tax, the non-profit entity must submit to the competent fiscal body a VAT refund request, according to the annex that is an integral part of this procedure, accompanied by the following documents:

a) a bill containing, in chronological order, the following information for each purchase: name, number and date of the document, value without VAT, value with VAT, value including VAT;

b) copies of the invoices in which the goods and services purchased for which the restitution is requested are recorded;

c) copies of import customs declarations, in the case of imported goods;

d) copies of tax receipts whose individual value, including VAT, does not exceed 100 euros. In the event that this value is exceeded, applicants must present copies of the invoices;

e) documents showing that the purchased goods/services for which the VAT refund is requested are intended for hospital units owned and operated by the non-profit entity, if the purchased goods/services have this destination;

f) the documents showing that the purchased goods/services for which the VAT refund is requested are donated/made available free of charge to the hospital units in the public state network, respectively the contract of donation/making available free of charge and the handover - receipt report, if the purchased goods/services have this destination;

g) the affidavit of the legal representative of the non-profit entity from which it follows that the goods are normally intended for use in the field of health care or for use by disabled persons, essential goods for compensating and overcoming disabilities.

The deadline for submitting the refund request

Non-profit entities can request the refund of the value added tax within 90 days from the end of the calendar month for which the refund is requested, as follows:

a) for goods that were delivered to them or services that were provided for their benefit during the month for which the restitution is requested, if the goods/services purchased are intended for hospital units owned and operated by the non-profit entity;

b) for goods that were delivered to them or services that were provided for their benefit, which are donated/made available free of charge to hospital units in the public state network during the month for which restitution is requested, if the purchased goods/services are intended for hospital units from the public state network.

Important !

In the event that non-profit entities have not submitted the value added tax refund request and/or the related documentation within the deadline, at their request, the general director of the Regional General Directorate of Public Finance can approve the value added tax refund, if the request is submitted within 5 years from January 1 of the year following the one in which the right to refund the tax arose. In this sense, based on the above-mentioned documents submitted by the applicants, the competent fiscal authority will prepare a report signed by its manager, from which it can be concluded that, although the refund requests were submitted late compared to the stipulated deadline, the conditions for granting the refund of the value added tax are met, which will be forwarded to the general director of the Regional General Directorate of Public Finances, for the approval of the refund of the value added tax.

The settlement of VAT refund requests is carried out according to the procedure established by order of the president of the National Agency for Fiscal Administration.

Non-profit entities must justify compliance with the destination of the amounts representing the VAT returned from the state budget, including the amounts that were offset against the entity's fiscal obligations, with documents attesting to the subsequent acquisition of goods/services provided for in art. 294 para. (5) letters a) and b) from the Fiscal Code.

ANNEX to the procedure

REQUEST FOR REFUND

of VAT related to purchases of goods or services made by non-profit entities, for which the exemption provided for in art. 294 para. (5) letters a) and b) from Law no. 227/2015 regarding the Fiscal Code is applied

In accordance with Art. 2 of the VAT refund procedure related to purchases of goods or services made by non-profit entities, for which the tax exemption applies according to art. 294 para. (5) letters a) and b) from Law no. 227/2015 regarding the Fiscal Code, approved by Order of the Minister of Finance no. 2.438/2023, with this request we request the refund of the value added tax, in the amount of .......... lei, for the purchased goods/services which are:

We request the refund to account no. . . . . . . . . . ., opened with . . . . . . . . . ., branch. . . . . . . . . . .

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