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Romania limited VAT split payments March 2018

  • EU VAT
  • 22 January 2018 | Richard Asquith

Romania limited VAT split payments March 2018

Romania has implemented a limited VAT split payments regime from 1 March 2018 in attempt to reduce VAT losses and fraud.

From 1 January 2018, Romanian tax payers in financial difficulties must establish VAT Bank Accounts for the secure receipt of VAT receipts and onwards remittance to the tax authorities.  The criteria for the requirement includes outstanding balances at 31 January 2018:

  • Large tax payers with debts above RON 15thousand
  • Medium tax payers with debts above RON 10thousand
  • Other tax payers with debts above RON 5thousand

Split payments involve customs paying the VAT element of any taxable supply into a special VAT Bank Account of the company. This account is controlled and monitored by the tax authorities.

Romania has the largest EU VAT Gap, the difference between VAT receipts and forecasts, as a ratio to GDP.

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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.