The VAT exemption is granted based on a VAT exemption certificate issued especially for these acquisitions, as follows:
1. issuance of invoices without VAT by the contractors (suppliers) which are
registered for VAT purposes in Romania according to article 153 of the Fiscal
Code to the Romanian contracting authority1 and by the subcontractors registered for VAT purposes in Romania according to article 153 of the Fiscal
Code to the contractors;
2. direct VAT exemption for the following types of operations:
(i) imports of goods in Romania directly performed by the contracting authority and by the contractors;
(ii) intra-Community acquisitions of goods in Romania performed by the contracting authority, for which it would be the person liable to pay the VAT;
(iii) supplies of services performed by suppliers that are not established in Romania, for which the Romanian contracting authority, as beneficiary, is liable to pay the VAT; and
(iv) supplies of goods performed by suppliers not established in Romania, for which the person liable to pay the VAT is the contracting authority according to article 150 (1) (g) of the Fiscal Code.
In respect of transactions performed before a VAT exemption certificate is obtained or for transactions for which such a certificate was not requested, the Romanian contracting authority can request a VAT reimbursement for the VAT incurred in respect of the NSIP projects.