Newsletter no. 6/2019

AS OF JULY 1, 2018, ALL COMPANIES ARE REQUIRED TO PERFORM A
PHYSICAL SECURITY RISK ANALYSIS

Pursuant to Art. 66 of Law No. 333/2003, companies are obliged to carry out a risk analysis of
physical security with regard to the guarding of assets, goods and the protection of persons
within the company. The entry into force of this law was postponed for the time being, but it
has been in force since 1 July 2018.

What does this risk analysis mean, who are the persons authorised to carry out the
analysis and what documents are required?
According to legal regulations, risk analysis is a binding document for companies that own
assets and assets and whose protection they must ensure. More specifically, this analysis is
an assessment of the vulnerabilities a company may have, so that potential risks are
reduced. Security measures must be taken on the basis of this physical security risk analysis
issued by the Ministry of Administration and the Interior.
The review of the risk analysis must be carried out in the following situations:

  • every three years for correlation with possible risk changes that endanger the physical
    safety of the operation
  • at the latest 60 days after the occurrence of an incident that endangered the physical
    security of the company
  • no later than 30 days after changes to the structure of the building, its functionality or
    the object of the company’s activity have taken place

The physical security risk analysis may only be carried out by experts registered in the
RNERSF (National Register of Physical Security Risk Assessors). Once the assessment
has been carried out at the company by the expert, the expert will prepare a report and an
assessment rating scale.
If the companies do not comply with the legal requirements of Law No. 333/2003 and no risk
analysis is carried out, they may be fined between 10,000 and 20,000 lei. If the recommended
measures are not or only partially implemented after the risk analysis for physical security has
been carried out, the fine is between 5,000 and 10,000 lei.

FROM 1 JANUARY 2020, AMENDMENTS TO THE VAT FOR INTRACOMMUNITY
TRANSACTIONS WILL ENTER INTO FORCE

The Implementing Regulation (EU) 2018/1912 complements the Directive (EU) 2018/1910 on
the harmonisation and simplification of certain provisions in the VAT system with regard to the
taxation of trade between EU Member States, both measures being applicable in all EU
Member States from 1 January 2020.
What changes will the implementation of Regulation 2018/1912 bring?
The package of measures adopted aims to harmonise the VAT regulations in all Member
States with regard to the following:

1. Simplification with regard to consignment stocks
In future, it will apply to all member states that an intra-Community delivery will only take place
when the goods are removed from the consignment warehouse by the customer and not when
they are already delivered to the consignment warehouse. The recipient thus declares the
intra-Community acquisition and the foreign supplier no longer has to register for VAT in the
member state in which the consignment warehouse is located.

2. Chain transactions
Where goods transported within the Community are the subject of several successive sales
of goods, transport shall be allocated to only one supply and only that supply shall be regarded
as an intra-Community supply exempt from VAT. The remaining deliveries are considered
local and are subject to value added tax in the country of delivery.

3. Obligation to provide evidence in intra-Community trade
In future, intra-Community deliveries of goods will only be exempt from VAT if the following
conditions are met cumulatively:

  •  The buyer shall inform the supplier of a valid VAT identification number, which is
    entered on the invoice for the intra-Community delivery;
  • The buyer reports the intra-Community delivery in the summary report Declaration
    390;
  • The supplier has at least two of the following documents, drawn up by two different
    independent parties, one from the other, the seller and the buyer: documents relating
    to the dispatch or transport of the goods (CMR or transport invoice), transport
    payment documents, insurance documents.