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; otherwise known as the ‘Quick Fixes’. The ‘Quick Fixes’ aim to provide simplifications to VAT treatment that applies when EU supplies of goods take place. These include:
- Simplification and harmonisation of rules regarding call-off stock;
- The VAT identification number of the customer becoming a substantive condition in order to exempt the intra-Community supply of goods;
- Simplification of chain transactions to enhance legal certainty by establishing uniform criteria; in addition to
- Harmonisation and simplification of the rules relating to the need to provide documentary evidence as proof of an intra-Community transport of goods. This is for the purposes of applying the VAT exemption.
The enactment of this bill will follow many other EU Member States in implementing the European Commission’s 2018 Directive on the harmonisation and simplification of certain rules in the VAT system for the taxation of trade between Member States. All Member States should have enacted this Directive into law by 1 January 2020.
The ‘Quick Fixes’ are now in effect in Romania. You can prepare your business for the Quick Fixes by watching our webinar here.
If any of the above changes affect your business, please contact one of our VAT experts to find out how we can assist you.