People who create objects manually, manufacture production or provide services and sell them, in their own name, in order to ensure a permanent source of income must register under one of the legal forms of organization, such as individual entrepreneur. These people must have a cash register and pay taxes. If they don’t do so, they are liable to fines.
In a response to IPN, the State Tax Service said the legal entities and individual entrepreneurs are registered at the Public Services Agency. The taxpayer is obliged to collect cash through cash registers, respecting the regulations approved by the Government, including the List of types of activity whose specificity allows collecting cash without cash registers.
Individuals who carry out independent activity are entitled to sell goods produced by them for final consumption (own consumption). The Law on Food Safety specifies the list of activities that are subject to registration in the field of food safety and prohibits the sale of food prepared at home by the self-employed individual.
Under the Law on Internal Trade, to become involved in trading activities, sellers must inform the local public authority by submitting a notification on the initiation of trade. The trade activity starts the day the local public authority receives the notification, through the trade information resource.
The taxpayer is obliged to possess documents of origin for the sold goods, to keep the register of purchases from individuals and to ensure the storage of these documents within one year from the moment of purchase of goods. The documents of origin in case of sale of own goods will be the documents that were drawn up when purchasing the raw material from which the sold goods were produced.
According to the Tax Code, the income tax rate is 1% of the object of taxation, but not less than 3,000 lei (for the full fiscal year). The income tax is calculated quarterly by the State Tax Service, which submits payment notices by the 25th date of the month following the reporting quarter. For the first – third quarters, 1% of the sales made for each quarter is paid, but not less than 750 lei. The income tax is paid by the 25th date of the month following the deadline for submission of the payment notice.
The person who carries out activity without having the legal authorization for this activity or without being registered with the state registration body is liable to a fine of 30 to 180 conventional units (a c. u. is equal to 50 lei).
Contraventions are identified and examined by the State Tax Service or the police.
