3823

Authorization procedure and Trade Register aspects for NACE 3823

Setting up a company that carries out activities classified under NACE code 3823 'Other waste treatment activities' involves going through the standard registration steps at the Trade Register (ONRC), but with special attention to the main object of activity. When submitting the registration application, this exact NACE code must be indicated, and in the case of limited liability companies (SRL) or joint-stock companies (SA), it is recommended to include a detailed description of the treatment operations (physico-chemical, biological, thermal, etc.) in the constitutive act. Except for cases where the activity involves hazardous waste – in which case a special authorization regime applies – for non-hazardous waste, registration at ONRC is done based on a declaration on own responsibility according to Law 359/2004. However, in practice, authorities often require proof of a sanitation contract with an authorized operator or proof of possession of compliant storage spaces. ONRC will issue the registration certificate and assign the tax identification number (CUI), after which the company must register for tax purposes with the Tax Authority (ANAF), requesting and obtaining the corresponding fiscal vector (profit or income tax, VAT at collection or normal, depending on turnover).

Regulatory framework, specific approvals, and control institutions

For NACE 3823, the main legal framework is Law No. 211/2011 on waste management and Government Decision No. 856/2002 on waste management. Economic operators must hold an environmental permit issued by the territorial Environmental Protection Agency (APM) – depending on the nature of the treatment process (neutralization, incineration, composting, etc.), this may be an integrated environmental permit or a simple regulatory act. If the treatment involves hazardous waste, the provisions of Emergency Ordinance No. 195/2005 on environmental protection apply, and the permit is issued by the National Authority for Regulation of Nuclear Activities (ANRAN) or the Environmental Guard (GNM). Control institutions include: National Environmental Guard – County Commissariat (unannounced checks on compliance with storage, labeling, and transport rules), National Waste Regulatory Authority (ANR) – for the authorization of installations, ANAF – for verifying the correct declaration of revenues and environmental taxes, and Territorial Labor Inspectorate (ITM) – regarding occupational safety in technological processes with chemical or biological risk. It is mandatory to draw up and maintain an Operating and Organization Regulation that includes working procedures for occupational safety and the management of waste generated by its own activity.

Tax management, ANAF audit risk, and specific accounting

From a fiscal perspective, waste treatment activities are subject to the general rules of the Fiscal Code, but have particularities. The tax base for VAT is established at the value of the service provided (including collection, transport, and treatment costs), and the standard rate of 19% applies, except when the operator provides sanitation services to the public – in which case the reduced rate of 5% may apply according to art. 291 para. 2 letter c) of the Fiscal Code. Also, deductible expenses can be recorded for the depreciation of specific machinery (crushers, screens, incineration turbines, etc.), but depreciation must be calculated according to the fixed assets catalog. The risk of ANAF audit is high in this sector, as authorities frequently check the correctness of operations declared in the RO e-Factura and RO e-Transport systems, especially for waste transported between counties. It is recommended to keep a separate record of incoming and outgoing waste quantities, accompanied by supporting documents: invoices, accompanying forms, waste analysis reports (if applicable). Accounting must distinctly reflect revenues from treatment and expenses for energy, chemicals, qualified personnel salaries (plant operators, chemists). Incorrect recording of treated waste stocks can lead to VAT adjustments and penalties. Additionally, operators must submit monthly declaration 392 regarding hazardous substances, if they treat waste with toxic content. To avoid sanctions, close collaboration with a tax consultant specialized in environmental matters and continuous updating of waste legislation (frequently amended by emergency ordinances) is necessary.