Split VAT to become mandatory for all companies in Romania from next year

Senators of the governing coalition will vote for the split VAT payment to become mandatory for all companies from January 1, 2018, Eugen Teodorovici, the Senate’s budget committee president, said yesterday, reports local Profit.ro. The Senate will thus vote the initial form of the draft project, which provided that all companies in Romania would have to adopt the split VAT from January 1, 2018. The second form, which was proposed by the Senate’s budget committee last week, provided that the split VAT payment would become mandatory only for state-owned companies and the firms that are in contractual relations with the state from next year. However, Social Democratic leader Liviu Dragnea criticized the changes and hinted that Teodorovici may lose his position as head of the Senate’s budget committee if he continued to alter the Government’s initiatives. Teodorovici’s statement shows that the draft project’s initial form has won. This is bad news for local companies, as most of them disagree with the split VAT while fiscal experts say this system may block the local economy. editor@romania-insider.com