4777

Authorisation procedure and Trade Register aspects for CAEN 4777

To carry out the activity of retail sale of watches and jewellery (CAEN 4777), registration with the Trade Register (ONRC) involves completing the single registration declaration (standard form), with the exact mention of CAEN code 4777 as the main or secondary object of activity. According to Law 359/2004, upon establishment of the company, a declaration on own responsibility regarding the fulfilment of operating conditions is submitted – no prior approvals from ONRC are required. Subsequently, within 30 days of registration, the fiscal registration declaration (Form 010) must be submitted to the Tax Authority (ANAF), communicating the registered office, work points, and the fiscal vector. For physical stores, authorisation for operation by the local authority (city hall) is required, and if jewellery made of precious metals is sold, authorisation from the National Bank of Romania (BNR) and compliance with Law 86/1996 on the regime of precious metals are necessary.

Regulatory framework, specific approvals and control institutions

Approvals and authorisations

The sale of jewellery made of precious metals (gold, silver, platinum) requires obtaining an authorisation from the National Bank of Romania (BNR) according to Law 86/1996. Products must be marked with the legal title (e.g., 375‰, 585‰, 750‰) and be accompanied by certificates of origin or warranty documents. For luxury watches, no special approval exists, but the rules on warranties and correct labelling must be observed. The company may be subject to controls by the Consumer Protection Authority (ANPC) regarding price display and product conformity, as well as by the Territorial Labour Inspectorate (ITM) for labour relations.

Specific obligations

All sales are registered through cash registers connected to the ANAF system, and electronic invoices must be transmitted through the RO e-Factura system for B2B transactions. For online sales, Law 365/2002 on electronic commerce applies, requiring the display of terms and conditions, warranty, and return policy. Products made of precious metals are exempt from VAT on import under certain conditions, but domestic transactions are subject to the standard VAT rate (19%).

Tax management, ANAF audit risk and specific accounting

Tax aspects

For CAEN 4777, the normal VAT regime applies (standard rate 19%), and in the case of retail trade, the VAT-on-collection system may be opted for if the annual turnover does not exceed the legal threshold. The taxable base for jewellery is the selling price, and the profit margin is subject to corporate income tax (16%) or income tax (1% or 3% of turnover) depending on the form of organisation. For the sale of used precious metals, a special taxation regime applies (VAT is not deductible on purchases from individuals), and collections are reported to ANAF through the 394 return and VAT return.

Inventory accounting

Periodic inventory (mandatory annual) must include verification of the titles of precious metals, and differences are treated fiscally according to the Fiscal Code (VAT adjustments, corporate income tax). For luxury watches and jewellery, the use of a secure warehouse card and valuation at acquisition cost or utility value is recommended. Losses exceeding legal norms (e.g., theft, breakage) are deductible only if proven by constatation documents (minutes of the insurer or police authorities).

ANAF audit risks

ANAF checks with priority: the concordance between physical and accounting inventories, correct recording of revenues (major risk in retail where collections may be undeclared), compliance with cash limits (daily limit of 50,000 lei, according to Law 70/2015), and correct submission of fiscal returns. Penalties for incomplete declaration of revenues can reach up to 80,000 lei and suspension of activity. To minimise risk, the use of a management system that records each sale, issuing a fiscal receipt (even for card payments), and electronic archiving of supporting documents are required.

Recommended supporting documents

• Purchase invoices from authorised suppliers (with mention of the title of precious metals)
• Warranty certificates for watches (according to Government Emergency Ordinance 140/2021 on guarantees)
• Daily cash reports, bank statements and receipts for advances
• Commission or consignment contracts if second-hand products are sold