UPDATE: Romania to consider the implementation of split payments

21 December 2017

On the 14 December 2017, the Romanian government approved a new law that significantly alters which businesses are affected by the new VAT split payment legislation, which is to be introduced on 1 January 2018.

Originally this was going to apply to all VAT registered businesses in the country, however the new law states that it will now only apply to companies with an overdue VAT debt as at 31 December 2017 and companies who are over 60 days late in paying their VAT obligations during 2018.

As stated previously the split payment procedure will require the Romanian VAT registered business to open a special, 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 secure bank account. At the same time, they will have to make 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.


Find out more about VAT in Romania
LATEST NEWS

Emergency VAT measures to combat the financial impact...

Due to the negative financial impact that the Coronavirus pandemic is having on businesses all over the world, a number of tax authorities have implemented...

SEE MORE
LATEST NEWS

Cameroon VAT on foreign e-commerce

Cameroon has extended its Value-Added Tax (VAT) system to cover supplies of online goods and services supplied by non-resident (foreign) companies in the...

SEE MORE
LATEST NEWS

Fiji VAT on e-services provided by remote sellers

Fiji is proposing to extend its Value-Added Tax (VAT) regime to apply to the sales of electronic services supplied by non-resident (foreign) companies to...

SEE MORE

Gated Content

The following email providers are not accepted: gmail, hotmail, yahoo. Please use proper company email.