Romania 2018 split payment criticism
- Aug 29, 2017 | Richard Asquith
Plans in Romania to introduce anti-VAT fraud split payments from 1 January 2017 have drawn criticism.
The Romanian Foreign Investor Council has suggested that other reforms, including Standard Audit File for Tax (SAF-T) and government controlled e-invoices are more effective at preventing VAT fraud. Split payments will require tax payers to create separate VAT bank accounts for receipt of the VAT element of their sales invoices. These accounts can be supervised by the tax authorities, including transfers to companies’ regular bank accounts. This will limit cash-flow options for companies.
Whilst the Council has called for a reference to the European Union, this is unlikely to be successful in blocking the measure as a similar system is already in place, and approved in Italy.
