7711
Renting and leasing of cars and light motor vehicles
This code covers the rental and leasing of passenger cars and light road vehicles (under 3.5 tons), either on a short-term (daily/weekly) or long-term (monthly/yearly) basis. Essentially, if you have a fleet of vehicles that you provide to clients for a fee, this is your code. However, it does not include financial leasing (which is treated separately) or the rental of heavy vehicles.
Entrepreneur Profile
Acest cod este potrivit pentru SRL-uri, PFA-uri sau întreprinderi individuale care dețin una sau mai multe mașini și le închiriază clienților (persoane fizice sau juridice) fără a asigura și șofer. De asemenea, este util firmelor de leasing operațional sau companiilor care administrează flote auto pentru alte firme.
Who should avoid:
Avoid the exclusive use of code 7711 if the main activity of your company shifts towards other commercial or related branches not specified in the official description. See the excluded activities section below.
Authorization procedure and Trade Register aspects for CAEN 7711
Registration with the Trade Register (ONRC) for CAEN 7711 requires submitting the standard application and constitutive acts to the competent office. The main object of activity must be stated as 'Renting and leasing of cars and light motor vehicles' (CAEN code 7711). No prior mandatory approvals are required for simple registration, but it is recommended to explicitly mention the associated secondary activities (e.g., vehicle maintenance, consultancy). After registration, a sworn declaration according to Law 359/2004 is submitted to the Trade Register, by which the administrator confirms compliance with operating conditions. The company receives the registration certificate and the Unique Registration Code (CUI). Subsequently, the fiscal file is opened with the Tax Authority (ANAF) and the fiscal vector is requested, including registration as a payer of local taxes (building tax, land tax, transport means tax).
Regulatory framework, specific approvals and control institutions
The main normative acts are the Fiscal Code and the leasing legislation (Ordinance 51/1997). Although CAEN 7711 does not require special operating permits, the company must comply with consumer protection provisions (G.E.O. 21/1992) and the financial-accounting regime for leasing contracts. Control institutions include the Tax Authority (fiscal inspections), the Romanian Auto Register (RAR) for technical inspection of vehicles, and the National Authority for Consumer Protection (ANPC). For operational leasing, specific accounting rules apply (IFRS 16 or O.M.F.P. 1802/2014). For short-term rental, compliance with insurance provisions (RCA and CASCO) is required. If the company also provides accompanying services (driver), additional obligations from the Labor Code and Law 53/2003 apply.
Tax management, ANAF audit risk and specific accounting
The main source of fiscal risk concerns the VAT treatment of financial leasing contracts: VAT is applied to the total contract value, and deductibility is adjusted over the contract duration. For short-term rental, VAT is collected on each monthly invoice. ANAF may analyze the economic substance of transactions, especially in relations with related parties (transfer pricing). The company must prepare a transfer pricing file if it exceeds the legal threshold. Accounting distinctly records leased assets (tangible fixed assets) and rental/leasing income. It is recommended to use accounts 213 (means of transport) and 706 (income from royalties, rents). Depreciation is calculated based on normal useful life. Maintenance and insurance expenses are deductible if they relate to taxable income. A high-risk aspect is the personal use of vehicles: if the company provides cars to employees, the value of personal use is taxed as income in kind (social contributions and income tax). ANAF will verify compliance with these provisions by analyzing supporting documents and logbooks. Also, for financial leasing, special rules apply for deducting interest and adjusting VAT upon contract termination. The company must implement reporting systems according to RO e-Factura and RO e-Transport if transport is carried out on Romanian territory. Withholding tax on rental income (if the lessee is an individual) is done by the company through the 100 declaration. To avoid risks, it is recommended to consult an experienced accounting expert and to constantly update internal procedures.
Included Activities
- ✅ Renting of passenger cars and light motor vehicles (under 3.5 tons) without driver
- ✅ Operational leasing of passenger cars and light vehicles
- ✅ Renting of off-road vehicles (SUVs) and light recreational vehicles
- ✅ Renting of vehicles with or without purchase option (operational leasing)
- ✅ Fleet management activities for third parties
Excluded Activities
- ❌ Financial leasing (classified under 6491)
- ❌ Renting of heavy motor vehicles (over 3.5 tons) - code 7712
- ❌ Renting of motorcycles and light trailers - code 7732
- ❌ Manufacture, sale or repair of motor vehicles
- ❌ Taxi or passenger transport activities with driver
Similar or Related CAEN Codes:
From the same category of economic activities:
Întrebări Frecvente
What authorizations are required for renting cars in Romania?
No special authorization from the Trade Register is required, but you must have CAEN code 7711 in your object of activity. If you rent cars with a driver, you need a transport authorization (code 4939). Also, the cars must be registered with the company and have valid RCA insurance.
Can I rent cars to individuals without paying VAT?
It depends on the company's VAT regime. If you are a VAT payer, you will apply 19% VAT on invoices issued to individuals. If you are a non-VAT payer (turnover under 300,000 lei/year), you will not collect VAT. For rentals to EU legal entities, reverse charge may apply if the client has a valid VAT code.