Romania Jan 2018 VAT Split Payments
- EU VAT
- 28 December 2017 | Richard Asquith
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.