The plenum of the Senate adopted on Tuesday, with 54 “pros” and 45 “cons”, the law approving the ordinance on the split VAT, which provides, in its new form, that the split VAT payment will be mandatory only for the companies in insolvency or who register delays in paying this tax. Also, companies willing to opt for this measure will receive a 5% exemption from the profit tax.
According to the new regulations adopted by the plenum of the Senate, “the obligation to open and use at least one VAT account belongs to the taxable persons registered for VAT purposes (…) in order to collect and pay VAT, as well as to the public institutions registered for VAT purposes (…) in order to collect VAT, which are in at least one of the following situations:
- a) on December 31, 2017, they register overdue fiscal obligations representing VAT, excepting those for which payment rescheduling was obtained, higher than: RON 1,500 for large taxpayers, RON 1,000 for medium taxpayers, RON 500 for small taxpayers and RON 100 for individual taxpayers;
- b) starting from January 1, 2018, they register overdue fiscal obligations representing VAT older than 30 days from maturity, except those for which payment rescheduling was obtained, higher than: RON 1,500 for large taxpayers, RON 1,000 for medium taxpayers, RON 500 for small taxpayers and RON 100 for individual taxpayers;
- c) are subject to national laws on insolvency and insolvency prevention procedures”.
Those who are willing to opt for the split VAT payment can waive this mechanism at the end of the fiscal year, but no sooner than one year since the measure started to be applied to them.
Companies who are subject to the law on the split VAT payment, namely those who registered delays in the VAT payment or who are in insolvency, can waive this measure within six months since they are no longer in that situation.
Read more about this controversial law on Nine O’clock.ro.