Minister: Companies in Romania need to make separate VAT account

All companies operating in Romania will need to make a separate VAT account starting September 1 this year, according to the new minister for business environment, trade and entrepreneurship Ilan Laufer. This is part of the new Government’s strategy to reduce tax evasion. The state currently collects some 73-74% of the VAT it should collect, which translates into losses of RON 16-20 billion per year, namely some EUR 3.5-4.4 billion, according to Laufer, reports local Agerpres. „We wish to create this separate VAT account, which will be called Split VAT, starting September 1,” he said. The companies will use this account to collect the VAT from their sales and to pay the VAT to their suppliers when making purchases or to the state. However, they will not be allowed to withdraw money from this account. This system has already been implemented in Poland and will also be introduced in the UK, according to the minister. Major tax change: Romania’s new Govt. wants to go after multinationals with new tax on turnover Project in Romania: Solidarity tax for salaries above EUR 3,200 editor@romania-insider.com (photo source: Ilan Laufer on Facebook)