Romanian PM: Split VAT to apply to state-owned, insolvent or bankrupt companies

The split VAT will apply only to state-owned, insolvent or bankrupt companies, Romania’s Prime Minister Mihai Tudose said in a show aired by local station Realitatea TV, Hotnews.ro reported. When asked whether the split VAT could be dropped, the Prime Minister said “the answer lies in the middle” and that the government “will bring nuances” to the topic. The split VAT is a measure that the head of the ruling Social Democrat Party (PSD), Liviu Dragnea, requested to be implemented, according to Hotnews.ro. The split VAT implementation, as suggested in the PM’s recent comment, is reminiscent of a proposal made by the Senate’s budget committee at the end of September. A bill passed by the Senate’s budget committee stipulated that the split VAT payment would become mandatory next year only for state-owned companies and firms that are in contractual relations with the state. However, the committee said later it would vote for the split VAT payment to become mandatory for all companies from January 1, 2018, as the government announced initially. Survey: Smooth transition to split VAT system in Romania would take 2 – 4 years editor@romania-insider.com