VAT receipts down by 25pc

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VAT receipts are currently lower by RON 8 billion, which represents 25% of the VAT budget for the current year, government sources said, capital.ro informs.

The sources said that this situation has been reached either because of the lack of legislation that would regulate the issue more strictly, or because the companies are running the amounts from VAT that they should pay to the state.

The Ministry of Finance specified that the Romanian state will collect RON 6 billion during 2018-2020, RON 2 billion a year as VAT, if the split VAT measure will enter into force on January 1, 2018.

“The ministry is analysing to complete this measure to further reduce tax evasion. Other measures proposed by the business environment are envisaged, such as the implementation of electronic invoicing, initially set for entities operating with public institutions. Another mechanism is the reverse charge; the possibility of a possible extension of this mechanism in the high-risk area is being considered,” the ministry representatives said.

VAT accounts can be opened at the State Treasury units by public institutions registered for VAT purposes for their RON earnings. The State Treasury will also open accounts with entities that have business relationships with the state, and the VAT payers can open these accounts also with the credit institutions and they will have them open at the treasury units as well.

According to the amendments in the draft ordinance, the split VAT payment will be applied optionally between October 1 and December 31, and it will be mandatory as of January 1, 2018.

 

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