Romanian tax update - VAT
Multiple value added tax amendments became effective as of January 1, 2020. Taxable persons utilizing the VAT split payment mechanism will have their available VAT account balance automatically transferred to their current treasury or bank account between February 1-11, 2020.
The VAT split payment mechanism itself was repealed effective February 1, 2020. Consequently, taxable persons are no longer automatically enrolled in this mechanism. Additionally, as of February 1, 2020, VAT bank accounts became subject to enforcement proceedings by any creditor, regardless of receivable type.
Transport Documentation Clarifications
The Ministry of Public Finance provided guidance regarding proof of transport for exempting intracommunity supplies of goods. Goods are now presumed to have been transported between EU Member States if the vendor possesses required documents under new Romanian fiscal regulations. Otherwise, the previous regime remains applicable.