4687

Authorization procedure and Trade Register aspects for NACE 4687

The registration in the Trade Register of the company that will carry out the wholesale trade of waste and scrap (NACE 4687) is done by submitting the standard file. For a sole associate/individual administrator, the following documents are submitted: registration application (standard ONRC form), the constitutive act (company contract or deed of incorporation concluded in notarized authentic form), the affidavit regarding fulfillment of operating conditions under Law 359/2004, and proof of registered office (loan agreement, lease or ownership title). Specifically for NACE 4687, the main activity must be stated exactly with 4 digits. Given that the activity involves waste handling, an environmental opinion issued by the Environmental Protection Agency (APM) – environmental permit or environmental agreement, depending on storage capacity and waste nature – must be attached to the file. Also, for vehicles used for waste transport (non-hazardous or hazardous waste), a waste transport authorization from the APM is required. For hazardous waste, an authorization from the Environmental Guard is also required, along with compliance with Government Emergency Ordinance (OUG) 92/2021 on waste regime.

Regulatory framework, specific permits and control institutions

The field of waste trade is strictly regulated by OUG no. 92/2021, Law no. 211/2011 on waste regime (partially repealed but still applicable for certain procedures) and Government Decision (HG) no. 856/2002 on waste record keeping. Economic operators must hold an environmental permit (agreement or integrated permit) issued by the APM, which sets the operating conditions for temporary storage, sorting, treatment or simply transit spaces. For waste transport, a specific permit is issued by the APM, and each transport is carried out based on the load-unload form (waste consignment note) according to the provisions of Order of the Ministry of Environment, Waters and Forests (MMAP) no. 794/2022. Control institutions are: National Environmental Guard (GNM) – unannounced checks on compliance with waste regime; National Tax Administration Agency (ANAF) – for tax collection (including verification of classification as waste or by-product); Labour Inspectorate (ITM) – for working conditions and hazardous waste management; and Border Police (for intra-community transports). Additionally, waste transport between member states is carried out under Regulation (EC) no. 1013/2006, requiring specific documentation (prior notification, tacit agreement, etc.).

Tax management, ANAF audit risk and specific accounting

From a tax perspective, the sale of waste (metal, paper, plastic, etc.) is subject to VAT at the standard rate of 19%, except for special cases (non-taxable waste under the Fiscal Code – rare). Invoicing must comply with the mandatory RO e-Factura system for B2B relations (effective from January 1, 2024). Sales of waste to individuals are made with invoice or receipt, with payment via POS or cash (with a daily limit of RON 10,000 under Law 70/2015). Income tax (for sole proprietorships) or profit tax (for limited liability companies) applies as standard. A major ANAF audit risk is the correct classification of materials as waste or as secondary product/by-product (Art. 4 of OUG 92/2021). The difference is crucial: waste requires an environmental permit and strict record keeping; by-product is subject to normal commercial rules. ANAF analyses documents of origin, contracts, weighing slips and compliance with transport conditions. Specific accounting includes recording waste stocks at purchase cost, periodic evaluation of impairment (vehicles, buildings) and amortization of permits. It is mandatory to keep waste management records under HG 856/2002 – monthly centralized register, with quantities, waste codes (according to the European List of Waste – Decision 2000/532/EC) and destination. In case of using waste as alternative fuel or recycling, specific tax classification rules apply (excise duties for energy waste, if applicable). It is recommended to consult a specialized accountant with experience in the waste field, as the risk of administrative sanctions (fines from RON 5,000 to 50,000) and tax sanctions (incorrect calculation of taxes) is significant.