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The VAT Cash Accounting System Becomes Optional!

In tune with the festive spirit at yearend, authorities give us another reason for celebration since the application of the system according to which VAT should be collected upon payment becomes optional starting 1 January 2014, and the planned increase in excise duties is postponed until the 1st of April 2014.

Monitorul Oficial al Romaniei No 809 / 19 December 2013 has published Government Emergency Ordinance No 111 / 18 December 2013, which regulates tax measures and amends some legislative acts.

The Ordinance amends the provisions of Law No 571 / 2003, regarding the Tax Code, which refer to the rules for the application and operation of the VAT cash accounting system, with effect from 1 January 2014.

The major changes to the VAT cash accounting system refer to the following aspects:

  • The application of the VAT cash accounting system becomes optional. However, the taxpayers choosing to apply such system shall do so until the end of the calendar year in which they opted for it, excepting the case in which their turnover in that year is in excess of RON 2,250,000.
  • The taxable entities that apply the VAT collection system on 1 January 2014 may at any time request during 2014 to be deregistered from among such taxpayers by filing a notice in this regard.
  • The obligation to collect VAT upon payment within a 90-day term of the invoicing date is cancelled in respect of uncollected invoices.

Other amendments:

  • The application of higher excise taxes on leaded / unleaded gasoline, Diesel oil and kerosene (used as fuel), provided under Government Emergency Ordinance 102 /2013, shall be postponed until 1 April 2014.
  • Law No 148 / 2012, regarding electronic records of commercial operations, has been abrogated because its provisions run counter to the Community acquis concerning VAT. Therefore, the invoice treatment shall be regulated solely by the Tax Code (Law No 571 / 2003).

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.

Simona STEFANESCU

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