Legal & Tax Alerts

Split VAT mechanism removal

According to a normative act[1] recently published in the Official Gazette, starting with 01.02.2020, the provisions of Government Ordinance no. 23/2017 regarding split VAT (“GO no. 23/2017”) will be repealed.

In this regard, the fiscal authorities cease to make recordings in the Registry of persons applying split VAT, and, until Government Ordinance no. 23/2017 is repealed, the VAT account may be enforced by any creditor, regardless of the nature of the claim.

The amounts existing on 01.02.2020 in the VAT accounts of the economic agents which applied the split VAT mechanism, will be transferred to their current accounts, opened at the Treasury, or, in case such accounts do not exist, to another credit institution, pursuant to the information provided by the economic agents.

Starting with the same date, through the VAT accounts opened at the Treasury, no other transactions may be carried out apart from those which involve the transfer of the amounts in the current accounts of the economic agents.

 

[1] Government Emergency Ordinance no. 78/2019 regarding the amendments of some normative acts and the establishment of some measures in the field of agriculture, as well as for the approval of some fiscal-budgetary measures.

The article can be downloaded in PDF format right from this link.

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