Another very important element that will come into effect on 1 September is a VAT account. For those who are VAT payers, Romanian state wants to reduce VAT and, as in recent years, VAT collection is somewhere at 73-74%. The impact is that we annually lose somewhere between 16 and 20 billion RON.
Starting with September 1st the desire is to create a separate VAT account that will be called ‘Split VAT’. There will be an account where one will work with VAT, at purchase or payment, but you will not be able to withdraw money from that account. They will be blocked for the VAT transfer to the vendor or state.
This is a very important step, it is also applied in other countries, it will also be introduced in the UK and is already applied in Poland from a short period of time.
Changes to the VAT collection mechanism, split payment, were introduced into the government program, with application deadline of September 1.
Contact an Advisor
If you have any questions regarding this topic and how it might have an impact on your business, please contact the Mirus Consultant with whom you regularly work, or: