State aids for HORECA

STATE AIDS FOR HORECA - OUG no. 10 / 24.02.2021 for the amendment and completion of OUG no. 224/2020 on certain measures for providing financial support for tourism enterprises, accommodation structures, food structures and travel agencies, whose activity was affected in the context of the COVID-19 pandemic, as well as on some fiscal measures

The main changes are:

1. The duration of the granting of the state aid premium will be extended until 30 June 2022, the amounts paid being conditional on the budget appropriation granted.

2. The aids shall be granted after the European Commission has notified the decision authorizing the scheme: "Modification and/or completion of this state aid scheme shall take effect from the date of communication of the authorization decision by the European Commission."

3. The form of organization of the beneficiaries of the state aid scheme is regulated more precisely, as follows:

• Companies established according to Law no. 31/1990;
• SRL-D - Debutant SRL companies established according to OUG no. 6/2011 with subsequent amendments;
• Individuals who carry out independent activities, according to OUG no. 44/2008 with subsequent amendments.

4. The amount of the aid will be 20% of the decrease of beneficiary's activity in 2020 compared to 2019.

The calculation basis will be established in 3 ways, for various types of beneficiaries:

• The companies that report the turnover will receive 20% of the amount by which the turnover decreased in 2020 compared to 2019.
• The clarification is addressed to travel agencies that apply the VAT procedure to the profit margin, in the sense that the 20% percentage does not apply only to the agency commission, but the calculation basis will be the total invoices issued including the agency's margin.
• Another clarification comes for individuals who conduct single-entry accounting, where the calculation basis will no longer relate to sales, but will be determined taking into account the revenues from 2020 compared to 2019.

5. The calculation basis mentioned above must be assumed and signed electronically, as follows:

a) either by a natural person expert accountant or by a CECCAR member company through a certification report;

b) either by a natural person financial auditor or an audit company member of CAFR.

6. The payment of the certification / audit service is borne by the beneficiary.

7. The ordinance lists the CAEN codes covered by the State aid scheme as follows:

• Travel Agencies – CAEN 7911, 7912, 7920
• Structure With Accommodation Functions - CAEN 5510, 5520, 5530, 5590
• Food Structures: CAEN 5610, 5621, 5629, 5630
• Travel Guides: CAEN 7990.

8. The Ministry of Economy will draw up a collaboration protocol with ANAF, in order to subsequently verify the turnover of some beneficiaries, selected following the fiscal risk analysis.

9. The method for allocating aid has also changed.

• Payments are no longer made on the „first-come, first-served” basis: if the total value of the funding applications exceeds the commitment or budget appropriation allocated to the scheme, then the commitment/payment to the beneficiaries will be made proportionally, by reporting the approved amount for each beneficiary to the total amount of approved funding applications.
• The state budget proposed by the Government (sent to the Parliament) is 1 billion lei (as opposed to 2.5 billion lei in the previous regulation), but the estimated number of beneficiaries remained 73,211. Thus, if the volume of applications exceeds the budget allocated to the scheme, the aid obtained individually will also decrease.

10. Beneficiary companies will be required to maintain the activity for which they received the funding for at least 12 months from the payment date, respectively 24 months in the case of those who received grants of over 200,000 euros - according to the new OUG 10/2021. The old ordinance stipulated a period of only 6 months.