Romania offers wider VAT deferment scheme to importers
- Dec 13, 2013 | Richard Asquith
Romania has extended its import VAT postponement scheme according a Ministry of Finance Order issued at the end of last month.
Current Romanian import VAT postponement
Currently, only the holders of specialised VAT deferment certificates are offered the opportunity to postpone the cash payment of import VAT. Typically, these are the very largest taxpayers, who must demonstrate imports above RON 100 million (€20 million) per annum in prior years. They are then able to able the VAT reverse charge.
Changes extend VAT deferment
The new extension of the Romanian VAT deferment scheme will enable most importers to take advantage of the option of postponing any VAT cash flows. In particular, it will be available to any authorised economic operator (“AEO”), as in accordance with the EU VAT Directive.
In addition to the AEO businesses, VAT registered businesses that have customs clearance procedures may defer import VAT also.
If the business then makes an intra-community supply of the imported goods, then there is no import VAT to pay. Companies will no longer be required to provide a bank guarantee for the import VAT.