The Romanian Ministry of Finance released a draft ordinance introducing a split-payment mechanism for VAT payments on August 4. A revised version of the order was released on August 18th. The order requires that all VAT registered persons must open a dedicated VAT account for the collection and payment of VAT on supplies and purchases in Romania. Taxable persons must pay the VAT on purchased supplies into the supplier’s VAT account. Suppliers are required to supply purchasers with their VAT account information. Businesses will have seven days to transfer VAT payments not paid into the VAT account (such as cash or credit card payments) into the VAT accounts. The revised order has an optional effective date of October 1, 2017 and a mandatory effective date of January 1, 2018.
Earlier this month ordinance number 2326/2017 was officially published, requiring the electronic filing of many tax returns, including the VAT returns and the recapitulative statement.
About the Author
Andrew Decker is a Junior Regulatory Counsel at Sovos Compliance. Working within Sovos’ Regulatory Analysis Department, Andrew’s work centers on indirect taxes (VAT, GST, Sales Tax), with a particular focus on jurisdictions in Europe and Asia. Andrew is a member of the Massachusetts Bar with a J.D from Northeastern University School of Law and a B.A. from Bates College.More Content by Andrew Decker