Romania has published Law No. 72 of March 22nd 2018 in the Official Gazette, which provides for the enactment of certain corporate and VAT amendments.
Tag - Romania
It is being reported that Romania’s new government - led by Viorica Dancila, who was earlier this week approved as the country's first female prime minister - is to propose a VAT rate cut from 19% to 18%, beginning on January 1st 2019.
Further to the news we brought you just before Christmas we can now confirm that Klaus Iohannis, Romania’s president, has ratified the amendments to the VAT split payment mechanism, and they have now been published in the Official Gazette.
Further to previous reports we can now bring you news of significant amendments to the proposed VAT split payment mechanism in Romania.
On 14th December 2017 the Romanian parliament approved a law that alters significantly the VAT split legislation. Consequently only companies with overdue VAT obligations as of 31st December 2017 and those with delays of more than 60 days in paying their VAT obligations in 2018 will come under the scope of the VAT split mechanism.
The Romanian government’s current tax plans could add significantly to the cost of doing business. The scope of Split VAT is one topic being hotly debated at the moment.
The Split-VAT rule (which effectively means using separate accounts for all VAT transactions) was introduced in September and was planned to be in force from 2018.
From January 1 2018 Romanian Income Tax will be reduced from 16% to 10%. This will bring Romania in line with Bulgaria.
Romania currently has an outstanding deficit of uncollected taxes, totaling an estimated 7.7 billion euros. This is approximately 37.2% of all their taxes.
“The uncollected VAT is bigger than the Romanian budget allocation for 2017 for education, infrastructure investments or healthcare,” PwC Central and Eastern Europe, Daniel Anghel.
Further to our posting earlier in the month we can now inform you that the following amendments have been made to the proposed VAT legislation.
Romania is the latest EU member state to employ a VAT split payment system - meaning a major change in administrative requirements for Romanian companies. The split payment implies the use of a bank account dedicated to VAT receipts and payments.
page 1 of 5 - Next Page »