Senate passes law on split VAT

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The Senate has passed the draft law on split VAT on Tuesday, which will be optional for all economic operators, except for those in insolvency procedures or those not fulfilling the tax obligations regarding the VAT for a longer interval.

The draft has passed by 54 votes to 45.

According to the new provisions, companies are compelled to open and use at least one VAT account if they meet at least one of the following criteria: they are behind with VAT fiscal obligations on December 31, 2017, they report residual VAT obligations older than 30 days since the date of payment starting January 1, 2018 or if they are under the national legislation incidence on insolvency procedures.

At the same time, those who voluntarily opt for the split VAT can give up this mechanism at the end of the fiscal year, but not earlier than one year since the date when the measure has been applied.

The companies that have delays in VAT payment or that were insolvent can give up the split VAT in six months after they are not in this situation anymore.

The companies that voluntarily choose the split VAT benefit of two facilities. They will enjoy a 5% cutback to the payment of the corporate income tax for the fourth quarter of the 2017 fiscal year. Secondly, these companies will have their VAT delay penalties annulled overdue on September 30, 2017.

PNL, UDMR and USR voiced opposition to the draft law.

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