Romanian PM: Split VAT won’t be mandatory for all companies

The split VAT payment will become mandatory only for insolvent or bankrupt firms and the companies that have registered more than two delays in paying their VAT to the state, prime minister Mihai Tudose said on Friday, October 13. The Parliament will amend the emergency ordinance introducing the split VAT payment system, he added. In its current form, the split VAT entered into force on October 1 as optional and should become mandatory for all companies in Romania starting January 1, next year. The Finance Ministry has started to add “nuances” to the split VAT ordinance following talks with employers, Tudose explained. The VAT split payment means that all VAT paying companies would have a special VAT account where they collect the VAT from their clients and which they can use only to make VAT payments to suppliers or to the state budget. The companies wouldn’t be able to use the money in the VAT account for anything else. Only a few hundred companies have applied for using this system optionally starting October 1. editor@romania-insider.com