31 August 2017
In an effort to prevent VAT fraud Romania are proposing to introduce a new VAT split payments regime.
If introduced, the split payment procedure will require vendors to open a secure bank account specifically used for receiving and making VAT payments. The vendor’s customers will then pay the VAT amounts charged by the vendor directly into this special bank account, while making a separate payment of the net amount to the vendor’s regular bank account. The Romanian tax authorities will then be able to monitor the special VAT bank account and reconcile this with the vendors VAT reporting.
If accepted, this regime will be introduced on a voluntary basis from 1 October 2017 with a view to making it compulsory from 1 January 2018.
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