Romania slowly cancels duty free activity – only five years left for existing stores

New duty free stores in Romania will no longer be authorized and the existing duty free shops will continue to run only for five years from now, according to a recent Government decision. The Romanian government is trying to fight tax evasion. Data from the Ministry of Interior and data from the National Agency for Fiscal Administration (ANAF) shows 93 percent of the sales slips for cigarettes were fake, and over 40 percent of the cigarette sold in duty free were confiscated. Most of the duty free stores are not making a profit so not contributing much to the state budget, the Govt showed.

“The commercial circuit for duty free stores was such drafter so that they circumvent tax payment on profit, and their suppliers are in countries which make it possible to check: China, India, Dubai, Egypt,” a Govt. document shows.

Until the duty free stores will be closed down, there will be a quantity limit to alcohol and tobacco products purchases to a single buyer. The products sold in duty free stores are excise and VAT free and the companies selling them don’t pay any customs taxes.

Duty free stores which used to be opened at Romanian’s borders with other EU countries were closed down when Romania joined the EU in 2007. Only those at the borders with non-EU countries are still open. There are currently 50 duty-free stores, out of which 45 in 12 border crossing points.

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