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Further amendments to tax law in late autumn

The date on which VAT is to be charged on receipt of payment is nearing at a fast pace. That is why several amendments have been made in respect to this system in the last few days when the much expected Ghid privind aplicarea sistemului TVA la încasare” [Guide to the Application of VAT on Receipt of Payment] has also been published.

We are referring herein below to the major aforesaid amendments.

Monitorul Oficial al Romaniei No. 772/15 November 2012 has published Law No. 208/2012 approving of Government Ordinance No 15 / 2012 that amends and supplements Law No 571/2003, regarding the Tax Code.

As its title pinpoints, Law 208/2012 approves of Government Ordinance No. 15/2012 that amends and supplements Law No. 571/2003, regarding the Tax Code.  Said Ordinance also introduces some aspects related to the new VAT system according to which VAT should be charged on receipt of payment.

The most important aspects cover the following:

– abrogation of the exception provided under Art. 1342 (3) (a) of the Tax Code addressing the entities registered ex officio in the Register of Taxable Entities Applying VAT upon Receipt of Payment;

– VAT chargeability, when any taxable entity applying VAT on receipt of payment issues an invoice which is paid later in cash, either in part or in full;

– amendment of the provisions regarding the right to deduct the tax related to acquisitions performed by a taxable entity that has been recorded in the Register of Taxable Entities Applying VAT upon Receipt of Payment, or has been deregistered therefrom.

Monitorul Oficial No. 772/15 November 2012 has published Law No. 209/2012 approving of Government Ordinance No. 30/2011 that amends and supplements Law No. 571/2003, regarding the Tax Code, and regulating certain tax and financial measures.

The major amendments to Government Ordinance 30/2011, contained in Law 2009/2012, refer to:

– the method for the calculation of tax on means of transport;

– new provisions regarding phased-out payment of the taxes administered by the National Tax Administration Agency.

The amendments introduced by Law 209/2012 become effective as of 1 January 2013.

Please be informed that the Guide to the Application of VAT on Receipt of Payment has also been published on the Website of the Ministry of Public Finance.

The link on which you should click to find said Guide is:

http://discutii.mfinante.ro/static/10/Mfp/infotva/Ghid_TVA_laincasare2012.pdf

TAX ALERT by Mazars Consulting / MAZARS ROMANIA

* Note: You may find Romanian, German and French versions of the newsletter in Mazars’ archive

* TAX ALERT contains a selection of the latest major issues occurred in the Romanian legislative framework, is intended only to provide information and, hence, shall not be deemed to provide professional advice or consultancy.  Therefore, we assume no responsibility in this respect.

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