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Romania Jan 2018 VAT Split Payments

  • EU VAT
  • 28 December 2017 | Richard Asquith

Romania Jan 2018 VAT Split Payments

Romania’s President has passed the bill for the implementation of a mandatory VAT Split Payment law for implementation on 1 January 2018. The system has been voluntary since 1 October 2017.

The bill will now move to the Parliament, which may delay its implementation or make it voluntary only.

The new, anti-VAT fraud measure requires tax payers to open a secure VAT Bank Account to separately collect the VAT component of their sales invoices. Failure to abide by the requirements will result in a fine of 0.06% per day of incorrectly paid VAT.

Romania has the largest EU ‘VAT Gap’ to GDP ratio – a measure deficit of VAT collected versus expected.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.