Why is it important to verify turnover as of 12/31/2018? 4 reasons make it important to verify turnover (total revenue billed as of the end of 2018).
1) Shifting from the tax on tax profit (ordinary regime) to the micro-enterprise regime. Regarding this first point, the following conditions can be verified:
– If the taxpayer was a micro-enterprise as of 12/31/18 and had less than €1,000,000 in turnover –> remains micro-enterprise in 2019;
– if the taxpayer was subject to profit tax as of 12/31/18 and had less than 1,000,000 euros in turnover –> becomes a micro-enterprise in 2019;
– if the taxpayer was subject to profit tax as of 12/31/18 and made more than 1,000,000 euros in turnover –> remains subject to profit tax in 2019.
2) Change from VAT exemption regime to VAT deduction-payment regime (ordinary)
The ceiling related to the turnover above which the taxpayer’s VAT registration is mandatory remained set at 300,000 lei. Of course, it is also possible to opt for registration and activation of the ordinary VAT system.
3) Change from quarterly to monthly VAT periodicity and vice versa.
In this case, the reference ceiling is in of 100,000 euros; if during the year the quarterly taxpayer exceeds the 100,000 euros turnover threshold, he is obliged with effect from January 1 of the following year to declare and settle the tax on a monthly basis.
To the same extent, if a monthly taxpayer has not exceeded the turnover of 100,000 euros by the end of the year, he or she is obliged to declare and settle the tax on a quarterly basis as of January 1.
It is important to pay attention that in case of intra-EU purchase of goods, the periodicity becomes monthly from the following month of the purchase. So it is important to report such purchase.
4) Transition to VAT settlement under the “cash-in” system
The taxpayer may optionally apply the system upon collection for tax settlement. This system is compulsorily replaced as of January 1 of the year after the turnover (revenue) of 2,250,000 lei is exceeded.
All these reasons require constant verification of the turnover recorded during the year (for the 1st reason) or at the end of the fiscal year.
5) Intrastat Thresholds 2019
Starting January 1, 2019, the thresholds are set at 900,000 lei for intra-EU purchases of goods and 900,000 lei for intra-EU supplies of goods.
It is important to remember that during 2019 you can become an Intrastat declarant if in the first months of 2019 the total value of purchases and supplies of goods exceeds the threshold set by law.
