Romanian tax update - VAT

Jan 10, 2020 | Insight

Please note that there are a number of value added tax (VAT) amendments applicable as of the start of 2020, as follows:

  • Taxable persons applying the VAT split payment mechanism will have the available balance of their VAT account transferred by default into their current treasury/bank account between 1 and 11 February 2020;
  • The VAT split payment mechanism is repealed effective 1 February 2020.
  • Taxable persons will no longer be enrolled in the VAT split payment mechanism.
  • No later than 1 February 2020, a VAT bank account can be subject to enforcement proceedings by any creditor, irrespective of the nature of its receivable.

The Ministry of Public Finance also released certain clarifications with respect to proof of transport for the purpose of exempting intracommunity supplies of goods, as follows:

  • Henceforth, it is presumed that goods have been transported from an EU Member State to another if the vendor is in possession of the documents as defined under new Romanian fiscal regulations being introduced.
  • Otherwise, the pre-existing regime shall be applicable.