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EC ends infringement procedure against Romania on VAT refunding, ANAF head says

The European Commission has terminated the infringement procedure against Romania in VAT refunding (file 2009/2013), the National Tax Management Agency (ANAF) has announced, according to ziare.com.
ANAF Chairman Gelu Stefan Diaconu says the EC announcement confirms ANAF’s efforts to reform itself and the strengthening of its administrative capacities.
“I want to stress a very important issue: this is just the first step in reaching our objective to cut the VAT refunding interval. We have cut down the average interval from 180 days to 60 days, our next target is to refund the VAT in less than 15 days. We are ready in terms of administration, on condition the Finance Ministry and the Court of Accounts modify the current legal framework,” Diaconu said.
The EC has formally requested Romania on September 26, 2013 to change its administrative practice of refunding VAT. It found that almost all VAT refunds claims were systematically settled with unreasonable delays, sometimes taking over 180 days. This practice was not in line with EU VAT rules which foresee that VAT should be refunded swiftly so as not to create a burden for taxpayers.
The number of the dummy companies in Romania dropped significantly after the new registration procedure for VAT purposes was introduced, the Agency head also announced.
“We set up a new procedure for registration for VAT purposes on February 1 and this measure will have a remarkable effect, by increasing the collection rate of the value-added tax to the state budget. There is a very high number of dummy companies in Romania and the new registration procedure has led to curbing the number of such firms. We take out of the market hundreds of dummy-behaving companies on a monthly basis,” Diaconu stressed.

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