Subsidies received from ANOFM

The Government Emergency Ordinance (OUG) No 132/2002 regulated a financial aid amounting to RON 2,500 to support the employers who adopted teleworking in their activity. This amount is the maximum amount granted for each employee, which the employer may receive in order to purchase the goods required for carrying out its activity by teleworking.

 GEO No 132/2020 does not stipulate explicitly whether the amount of RON 2,500 represents a price including VAT, therefore the Ministry of Labor and Social Protection clarified this aspect on the website www.mmmuncii.ro.

The financial aid granted by the National Employment Agency (ANOFM) falls under the category of government subsidies related to assets, as set out in paragraph 392 of the Accounting Regulations approved by Order of the Minister of Public Finance (OMFP) No 1802/2014 approving the accounting regulations regarding the individual and consolidated annual financial statements.

Asset-related subsidies are subsidies for the granting of which the main condition is that the recipient entity purchases, builds or acquires fixed assets.

The following journal entries may be used to enter this aid in the accounting records:

1. At the date of approval of the file submitted to receive the subsidy:

2. At the date of receipt of the subsidy:

3. At the purchase date of the laptops:

4. As the laptops are depreciated, a revenue is recognized, equal to the monthly amount of depreciation of the laptops.

We believe that clarifications are needed as regards the treatment of the value added tax relating to the purchases of goods required to carry out the activity by teleworking. There are opinions according to which the right to deduct VAT on these purchases can be granted, but there is also a limitation according to the funding entity, which states that the amount of RON 2,500 includes VAT.