Changes in several Ministry of Finance orders regarding VAT

An Order ("the Order") has been published amending some rules regarding the cases of application of VAT exemption provided by the Fiscal Code, as well as new rules for VAT registration for newly established companies. The Order amends previous orders related to VAT exemption and registration. The first amendment clarifies that the VAT exemption for supply of goods / services related to ship construction may be applicable in some specific situations provided by the law. Another amendment stipulates that in order to apply the VAT exemption for supply of goods and services performed in the benefit of NATO member forces, a letter must be obtained from the National Defence Ministry confirming that those forces are participating in a common defence activity in Romania. Finally, from 23 April 2012, in the event of registration for VAT purposes the clearance certificate is mandatory for all shareholders regardless of the shareholding percentage.