Romanian FinMin: The value of VAT arrears exceeds EUR 1.5 bln

The value of non-recoverable arrears amounted to RON 7.1 billion (EUR 1.5 billion) at the end of September, finance minister Ionut Misa said yesterday. This represents VAT registered for taxpayers in bankruptcy, insolvency and reorganization. Of the total amount, almost RON 6 billion (EUR 1.3 billion) are arrears of taxpayers with no activity, reports local Ziarul Financiar. Another RON 200 million (EUR 43.4 million) represent arrears of taxpayers in the period prior to insolvency. Introducing the split VAT payment would remove the unfair competition, as some pay, while others don’t, finance minister added. The Government announced that the split VAT payment will not become mandatory from January 1. This system will apply only to companies that are in insolvency and bad-payers. editor@romania-insider.com