Update: 97.5pc of SMEs are against the split VAT, opinion poll reveals

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An opinion poll conducted by the National Council for the Private Small and Medium Sized Companies (CNIPMMR) reveals that 97.5% of the respondents do not support the split VAT and 97.5% believe this change will have negative consequences on the activity of their company, the council’s representatives have announced on Monday.

The opinion poll was conducted on the council’s website during August 8-28 and 818 companies have responded, of which 54.1 are micro-enterprises, 19.7% are small enterprises, 18.4% medium sized enterprises, 5.9% large companies and 1.9% other judicial defined companies.

Asked whether they support the amendment of the Tax Code and the split VAT, 97.5% of the respondents said they do not support the change. About 98.5% see no positive effect coming from the enforcement of the split VAT.

Among the negative effects they pointed to the increase in red tape, the doubling of number of payments, supplementary measures for checks and management of the VAT, the influence on the cash-flow and on blocking the money (89.9%), supplementary banking costs (86.2%), supplementary costs for the tax payers due to the need to change the IT systems (85.5%), significant effort in technical implementations due to the short time ahead until implementation (81%), the poll reveals.

Asked if they had been consulted by the authorities on the split VAT, 91.9% of the respondents had negative replies, only 8.1% said they have been informed by other sources, by the mass-media or through the internet.

CNIPMMR head says split VAT will block the economy as ANAF is unable to implement it

The split VAT will lead to the blockage the economy, because the National Agency for Fiscal Administration (ANAF) is technically unable to manage its implementation, the chairman of CNIPMMR, Florin Jianu, said on Monday.

“Romania would be the first and the only country to make this system binding for all. In Italy is working for the companies who work with the state, on voluntary basis. In Poland there are talks for three years and want to implement it as of January 1, 2018, on voluntary basis. In the UK there is also talk for three years and want to implement it for online transactions,” Jianu said.

Jianu added that, unfortunately, the government is not conducting impact studies and SME tests. They say there is no impact, actually there will be a huge impact, he said “as one fifth of a company’s money will be blocked in an account.”

The CNIPMMR head believes the decision is impossible to apply. “I look at the companies in rural areas. The ordinance says the companies should submit the VAT in three days. Any kiosk, which sells of RON 100 per day, RON 19 should be deposited into the VAT account and in five days someone from ANAF should give the go-ahead. This is incorrect, absurd and inapplicable. This measure will block the economy,” Jianu said.

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