Romania

Romania abandons 2019 VAT cut

August 3rd, 2018

Romania is considering postponing cutting its 19% VAT rate to 18%, as planned for January 2019. The decrease is in jeopardy as the country is struggling to reduce its deficit to 3% of Gross Domestic Product. Romania originally raised VAT from 19% to 24% in 2010 during the European financial crisis. But has since cut …


Romania

Romania 2018 VAT registration threshold rise

April 9th, 2018

Romania has introduced a retrospective rise in its VAT registration threshold for resident businesses. From 1 January 2018, it was increased from €65,000 per annum to €88,500 per annum. The European Commission last year authorised Romania to implement the rise as a variation on the Article 287 rules of the EU VAT Directive.


Romania

Romania cuts VAT to 18% 2019

January 29th, 2018

Romania has proposed a 1% VAT rate cut to 18% from 1 January 2019. The decrease comes as part of a package of tax simplifications. In addition to the reduction in the standard rate, the 5% reduced VAT rate will be extended to a number of property and agricultural supplies. Following the financial crisis, Romania …


Romania

Romania limited VAT split payments March 2018

January 22nd, 2018

Romania has implemented a limited VAT split payments regime from 1 March 2018 in attempt to reduce VAT losses and fraud. From 1 January 2018, Romanian tax payers in financial difficulties must establish VAT Bank Accounts for the secure receipt of VAT receipts and onwards remittance to the tax authorities.  The criteria for the requirement …


Romania

Romania Jan 2018 VAT Split Payments

December 28th, 2017

Romania’s President has passed the bill for the implementation of a mandatory VAT Split Payment law for implementation on 1 January 2018. The system has been voluntary since 1 October 2017. The bill will now move to the Parliament, which may delay its implementation or make it voluntary only. The new, anti-VAT fraud measure requires …


Romania

Romania delays VAT split payments 1 Mar 2018

December 18th, 2017

Reports are emerging that Romania will delay the introduction of Split Payments until 1 March 2018. The plan had been to introduce the anti-VAT fraud measure on 1 January 2018. Split Payments requires the customer on a B2B transaction to pay the VAT element of a transaction directly into a controlled VAT bank account of …


Romania

Romania relaxes VAT split payments

October 13th, 2017

Romania is to relax the initial mandatory requirements for VAT payers to implement split payment measures. Anti-VAT fraud split payments were introduced on a voluntary basis from 1 October 2017. They were to become mandatory for all VAT registered businesses on 1 January 2018. Following heavy lobbying from businesses and employer associations this is to …


Romania

Romania 2018 split payment criticism  

August 30th, 2017

Plans in Romania to introduce anti-VAT fraud split payments from 1 January 2017 have drawn criticism. The Romanian Foreign Investor Council has suggested that other reforms, including Standard Audit File for Tax (SAF-T) and government controlled e-invoices are more effective at preventing VAT fraud.  Split payments will require tax payers to create separate VAT bank …