Romania: VAT split-payment mechanism | KPMG | GLOBAL

Romania: VAT split-payment mechanism

Romania: VAT split-payment mechanism

Concerning the value added tax (VAT) regime, there have been recent discussions and debates over the split-payment mechanism.

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The VAT split-payment mechanism is optional from 1 October 2017, and mandatory from 1 January 2018.

Recent discussions reflect significant efforts, especially from the business community, to repeal or, at least, postpone the effective date when the split-payment mechanism will be mandatory for all entities registered for VAT purposes in Romania. Also, certain statements made by legislators appear to suggest a possibility of limiting the scope of application of the split-payment mechanism and / or postponement of the effective date.

 

Read an October 2017 report (English and Romanian) [PDF 353 KB] prepared by the KPMG member firm in Romania

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