4781

Authorization procedure and Trade Register aspects for NACE 4781

The establishment of a company that will carry out the activity of retail sale of motor vehicles, NACE code 4781, requires going through the standard registration stages at the Trade Register (ONRC). The registration application will mention NACE code 4781 as the main or secondary object of activity. The file must include the constitutive act, proof of the registered office, specimen signature and the affidavit under Law 359/2004 regarding the fulfillment of legal operating conditions. The mention regarding the premises must comply with requirements regarding the destination of the property (commercial space) and the fire safety authorization, as applicable. ONRC issues the registration certificate, but for NACE 4781 no prior approvals from ONRC are required; however, specific legislation requires obtaining an opinion from the National Authority for Consumer Protection (ANPC) and, if second-hand vehicles are sold, compliance with the provisions of Government Emergency Ordinance (GEO) 195/2002 on road traffic and vehicle registration. Subsequently, within 30 days of registration, the fiscal registration declaration (tax vector) is filed using form 010 with the Tax Authority (ANAF), specifying the VAT regime (exemption or taxable person). It is advisable to opt for VAT registration from the start, as margins and intra-Community acquisitions involve a right of deduction.

Regulatory framework, specific approvals and control institutions

The retail trade of new motor vehicles is regulated by Government Ordinance (OG) 21/1992 on consumer protection and by Law 240/2004 on producer liability for defective products. For used vehicles, GEO 195/2002 applies, supplemented by Order 118/2005 of the Ministry of Transport on periodic technical inspection, and Law 148/2000 on advertising. The main control institutions are ANAF, for fiscal aspects, and ANPC, for checking the legality of transactions, warranties and advertising. For second-hand motor vehicles, upon purchase, the vehicle identity card, registration certificate and proof of valid periodic technical inspection must be presented. In the case of selling a dismantled vehicle, deregistration from circulation and declaration to ANAF as dismantled goods are required, with the dismantling code mentioned on the invoice. No specific environmental approvals are needed if the activity does not include repairs, but if the space is rented, it is recommended to verify the landlord's environmental permit. The institution issuing the operating authorization is the mayor's office (operating permit for the commercial space) plus the agreement of the Emergency Situations Inspectorate (ISU) for fire safety. All vehicle transactions are recorded in the RO e-Factura system for B2B deliveries and details on stocks and invoices are submitted in D406 (SAF-T).

Tax management, ANAF audit risk and specific accounting

For NACE 4781, VAT is applied to the profit margin (margin VAT) for second-hand vehicles purchased from individuals or non-VAT payers, according to the Fiscal Code, art. 292 para. (2) lit. b). The operator must keep separate records of margin purchases and those with normal VAT. The tax base is the difference between the selling price and the purchase price, with VAT on the margin being 19% (or 9% if the reduced rate applies for electric vehicles under EUR 120,000). When selling to individuals, the invoice is issued without VAT but with mention of the margin regime. Major ANAF audit risk: incorrect recording of the margin and non-declaration of intra-Community acquisitions of second-hand motor vehicles (if the threshold of EUR 10,000/month is exceeded). Filing of the recapitulative statement (D390/D301) for intra-Community acquisitions is required, and if e-commerce is conducted, compliance with the Digital Services Package obligations (D390Modif). Corporate income tax is calculated based on net income, and for micro-enterprises (if turnover does not exceed EUR 500,000) the rate of 1% or 3% applies, depending on the number of employees. Recommendation: sale-purchase contracts must include explicit warranty clauses (minimum 1 year for consumers, according to GEO 140/2021) and be recorded in the accounting records at stock balance. ANAF will periodically check the correlation between stocks declared in SAF-T and the balances in the trial balance. Underestimation of selling prices to reduce the margin is not recommended, as corporate income tax applies to net profit, and margin VAT is calculated strictly on the price difference. It is advisable to contract a specialized accounting service for auto trade and to keep all supporting documents for a period of 10 years, according to the Fiscal Procedure Code.