4648

Authorization procedure and Trade Register aspects for CAEN 4648

Establishing a company with the main activity CAEN 4648 (Wholesale of watches and jewellery) involves following the standard registration steps at the National Trade Register Office (ONRC). The registration file must include the Articles of Incorporation, the sworn declaration according to Law 359/2004, identity documents of the shareholders/administrators, proof of registered office, and, if applicable, the agreement/consent for space use. Specific to CAEN 4648, no prior approvals from control institutions are required for registration with the Trade Register, but it is mandatory to correctly mention the main CAEN code and any secondary codes (if applicable) in the object of activity. The registered office must be real and correspond to storage or office activity – in practice, showroom spaces are also accepted.

After registration, the company is obliged to request VAT registration with the Tax Authority (ANAF) if it achieves a turnover exceeding the legal threshold (300,000 lei in 2025) or optionally below this threshold. The tax registration declaration must be submitted within 30 days of registration, and the fiscal vector must be completed with the corresponding codes: code 4648 for wholesale, plus codes for taxes and duties (corporate tax, VAT, contributions). Recommended: assignment of a special VAT code for intra-Community operations if import/export of watches and jewellery is intended.

Regulatory framework, specific permits, and control institutions

Wholesale of watches and jewellery is regulated by the provisions of Government Emergency Ordinance no. 99/2000 on the marketing of products and market services, supplemented by specific legislation on precious metals. Watches and jewellery are considered luxury goods, and strict rules on labeling, guarantees, and penalties apply to their marketing. The competent authority in the field of control is the National Standards Commission (CNS), and for precious metals, enterprises must hold an authorization from the National Authority for Administration and Regulation in Communications (ANCOM) or the Ministry of Finance, depending on the nature of the goods.

If the company sells watches with quartz or electronic mechanisms, regulations on electromagnetic compatibility and product safety (RED Directive) apply. For jewellery made of precious metals (gold, silver, platinum), compliance with Law no. 191/2003 on the regime of precious metals is mandatory, which requires marking with fineness title and registration with ANPC. Control is carried out by the Territorial Labour Inspectorate (ITM) and the Consumer Protection Authority (ANPC) in the field of labeling and warranties. Lack of specific permits attracts significant fines, and ANPC may order the suspension of activity.

Tax management, ANAF audit risk, and specific accounting

Activity CAEN 4648 falls under wholesale trade, so the tax base is the profit realized from the sale of goods. The company is obliged to pay corporate income tax (16%) or micro-enterprise income tax (1% or 3% depending on turnover). VAT applies at the standard rate (19%) for most products, but caution: watches and jewellery made of precious metals may benefit from the reduced VAT rate (5%) only if sold to final consumers under certain conditions – as a rule, wholesale trade is at the standard rate. Imports of watches and jewellery from outside the EU are exempt from VAT at import, but VAT is collected on resale.

The audit risk from ANAF is high in this sector due to high margins and the possibility of tax evasion through under-invoicing or undeclared transactions. ANAF primarily checks the correctness of issued and collected invoices, as well as the correct classification of operations in the RO e-Factura system. Since July 1, 2022, e-Factura is mandatory for all B2B invoices – non-compliance attracts fines of up to 10,000 lei. Also, for cash payments exceeding 5,000 lei, electronic payment instruments must be used (Law 70/2015). Specific accounting involves strict inventory records, revaluation at each inventory (annual), and recording of any impairments. Costs for merchandise purchases are recorded in account 371, and sales in account 707. For precious metals jewellery, it is recommended to use special inventory accounts (372.1) and input-output registers, according to ANCC norms.

An important aspect: for the wholesale of second-hand jewellery, the special VAT scheme for second-hand goods (Profit margin) applies, according to art. 274 of the Fiscal Code, but only if the goods were purchased from individuals or from another trader who did not issue an invoice with VAT. Otherwise, VAT applies to the total value. The single declaration on income tax and social contributions is submitted annually, and for employees, the standard rates of CAS (25%) and CASS (10%) apply.