Romania could become the only EU member state to enforce the VAT split payment, and this will have a major impact on Romanian companies. After the new system is implemented, once a service is performed, the suppliers will provide the client with a VAT account.
As a result of public consultations on the initial proposal for introducing a VAT split-payment mechanism the following amendments to the proposal were published on the Ministry of Finance website:
· The VAT split-payment mechanism, if enacted, is optional with effect from 1 October 2017 (instead of 1 September 2017)
· The VAT split-payment mechanism is optional for 3 months (instead of 1 month)
· The VAT split-payment mechanism is mandatory from 1 January 2018 (instead of from 1 October 2017)
· Incentives are introduced for taxpayers opting for the VAT split-payment mechanism in the period from 1 October 2017 to 31 December 2017
· The fines initially proposed for failure to comply with the VAT split-payment mechanism are amended in favour of the taxpayer
· The deadline for paying the VAT amount in the VAT account is extended
· A 3 day-term is set for the tax authorities to approve the transfer of amounts from the VAT account to the taxpayer’s bank account
· A registry of taxpayers opting for applying the VAT split-payment mechanism in the period from 1 October 2017 to 31 December 2017 is created
The system will be introduced on a voluntary basis on 1 September 2017 and will become compulsory in October 2017.
Contact an Advisor
If you have any questions regarding this topic and how it might have an impact on your business, please contact the Mirus Consultant with whom you regularly work, or: