Draft legislation has been issued in Romania to clarify certain aspects of the value added tax (VAT) split-payment mechanism. The clarifying draft legislation provides:
Read an August 2017 report [PDF 358 KB] prepared by the KPMG member firm in Romania
As originally proposed, all taxable persons and public institutions registered for VAT purposes would be required to open separate VAT accounts for receiving and making VAT payments. VAT accounts would be opened, by default, with the various treasury units within the tax offices where taxpayers are registered. However, any taxpayer could elect to open an account with a commercial bank (although, currently, not all banks operating in Romania have the relevant infrastructure to open these types of bank accounts). The VAT split-payment mechanism would apply to all taxable supplies of goods/services, from a VAT perspective, with the exception of transactions subject to the special regimes. Read an August 2017 report prepared by the KPMG member firm in Romania. The draft legislation (described above) is intended to clarify these proposals.
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