1627

Authorization procedure and Trade Register aspects for NACE 1627

For the activity of finishing wooden articles (NACE class 1627), registration with the Trade Register (ONRC) involves submitting the certificate of registration and a declaration on own responsibility according to Law 359/2004. The main activity object is completed with NACE code 1627, and for secondary objects correlated codes can be added (e.g., 1610 for sawmilling, 4759 for retail trade). The company must have a declared registered office – ONRC checks the existence of a space with commercial or professional destination, not just a domicile. For authorized natural persons (PFA) or individual enterprises (II), the fiscal vector must be mandatorily mentioned in the Single Declaration. The operating authorization is obtained after registration with the Trade Register, without requiring a special license from ITM or ISCIR, but documents regarding occupational safety and fire prevention are required.

Regulatory framework, specific permits and control institutions

Wood finishing involves the use of lacquers, paints, solvents and other volatile organic compounds (VOCs). Major risk: classification under Law 104/2011 on air quality, with the obligation of an environmental permit (not just a notification) if certain solvent consumption thresholds are exceeded. ANAF controls through mixed tax inspections, and the Environmental Guard checks the storage of waste resulting from finishing (chips, contaminated packaging, expired lacquers). Obligation: sanitation contracts with authorized companies, waste record sheets. From the perspective of health and safety: ITM checks the existence of chemical safety data sheets (SDS) and collective protective equipment (ventilation, aspiration). Risk: fines for lack of own safety instructions.

Additionally, if exotic wood or wood with biocides is processed, REACH Regulation and additional authorizations apply. For finishing furniture that comes into contact with food (e.g., kitchen countertops), Order MS 976/1998 applies – requires a declaration of conformity. Key institutions: the Public Health Directorate (DSP) can carry out unannounced checks on hygiene and emissions.

Tax management, ANAF audit risk and specific accounting

From a fiscal perspective, activity 1627 has standard VAT rates (19%) for finishing services, except when finished furniture is supplied – then VAT of 19% or 5% applies if it is children's furniture (legal basis: Fiscal Code art. 291). Major risk: incorrect classification of services as maintenance (reduced VAT) leads to VAT adjustments. ANAF frequently checks declarations 394 regarding supplies/services – discrepancies between issued and collected invoices attract penalties. Specific accounting: account 711 (variation of stocks) is recommended for auxiliary materials such as lacquers and thinners, which are recorded separately from raw wood. Fiscal impact: depreciation of finishing equipment (painting booths, sanding machines) is done over the useful life – inappropriate choice attracts corrections. Audit risk: companies with NACE 1627 are monitored due to significant costs with consumable materials – ANAF checks whether purchases of lacquers correspond to quantities invoiced to clients. Strict internal control is required regarding consumption vouchers and production sheets.

Regarding the RO e-Factura system, services provided to the state or legal entities in Romania are mandatorily invoiced through the system if they exceed the threshold of RON 4,500/contract. Wood finishing for individuals does not fall under this, but to avoid risk, it is recommended to use e-Factura for all operations. Declaration 300 (VAT return) is submitted monthly or quarterly depending on the threshold. Attention to reverse charge: if finishing is subcontracted to other companies with NACE code 1627, VAT on collection with adjustment note applies.

For tax optimization, full deduction of expenses for finishing materials (lacquer, sandpaper, paint) as raw materials is permitted, but expenses for equipment maintenance are deductible only if the connection to the activity is proven. Avoid undervaluation of stocks – ANAF performs physical inventory compared to accounting balances. In case of inspection, store ledgers for lacquers are also requested (minimum stocks are checked).

In conclusion, NACE 1627 requires rigorous analytical accounting, timely environmental permit and strict record of consumption to avoid fiscal risks. Recommendation: collaborate with a consultant specialized in wood production.