Romania | Implementation of the EU’s ‘Quick Fixes’ for VAT into law

By |January 31st, 2020|

On 23 December 2019, the Ministry of Finance approved a draft bill to implement the EU’s ‘Quick Fixes’ into VAT law in Romania. As a result, the draft bill is in effect from 1 January 2020. The draft bill relates to the implementation of the EU temporary cross-border transaction simplifications; [...]

Romania | Tax authorities approve SAF-T pilot

By |September 11th, 2019|

Romania proceeds with plans for a pilot of Standard Audit File for Tax (SAF-T) for large taxpayers in January 2020. The Romanian tax authorities often look to their Polish counterparts for guidance on introducing new tax legislation and reporting guidelines. Therefore, it’s no surprise to see them follow suit in [...]

Romania I Cuts VAT on “High Quality” Food to 5% From June 2019

By |June 18th, 2019|

Romania has recently enacted legislation providing that as of 1st June 2019, the VAT rate applicable to certain supplies of food will be lowered to the reduced 5% VAT rate. The 5% rate of VAT will apply to food supplies certified by the government as alpine products, organic products or [...]

Romania | Bad Debt Procedure no Longer Reserved for Declared Bankrupts

By |March 1st, 2019|

Romania permits bad debt relief which provides that subject to certain conditions, businesses that do not receive payment of Romanian VAT due on supplies of goods and services they make are permitted to claim relief. This means they can recover the VAT previously declared and paid to the tax authority. [...]

Romania | VAT on Tourist Transport Cut to 5% from January 2019

By |February 22nd, 2019|

Under changes to Romanian VAT law, as of 13th January 2019 tourist transportation services are subject to the reduced 5% rate of VAT. Recently published legislation provides that the scope of the 5% reduced rate has been extended to cover the following passenger transport services used for tourism or leisure [...]

Romania | Asked to Drop Split Payment Method by European Commission

By |November 29th, 2018|

The European Commission has initiated infringement proceedings against Romania, sending it a letter of formal notice, in relation to its VAT split payment mechanism. This is because the system has been found to be in breach of EU VAT law and the principle of freedom to provide services. Under the [...]

Romania | Anticipated 5% VAT Rate on Tourism Effective from November 2018

By |October 21st, 2018|

Following our recent story outlining the expected VAT rate changes on certain tourism services by the end of this year, the Romanian government has adopted an emergency ordinance under which the reduced 5% rate of VAT will apply as of 1st November 2018 to: Hotel accommodation and similar services; Renting [...]

Romania | Increased VAT Registration Threshold from April 2018

By |April 20th, 2018|

As of 1st April 2018, the Romanian VAT registration threshold for resident businesses is increased to LEI 300,000 (EUR 88,500) from LEI 220,000 (EUR 65,000). Taxable persons in Romania whose annual turnover falls below the registration threshold are exempt from registration for VAT purposes, which means that they may neither [...]

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