Premium
The application of the split Value-Added Tax (VAT) payment mechanism will be optional for all business operators, less the insolvent ones and those who fail to meet their VAT tax obligations for a longer period of time, Finance Minister Ionut Misa told a Government Question Time at Parliament on Monday. "I want to mention that, given the discussions inside the working groups of the Ministry of Finance, which are the largest working groups existing since the establishment of the National Tax Administration Agency (ANAF) and the Ministry of Finance, discussions with the business environment, meetings with trade unions and employers, as well as discussions inside the social dialogue commissions, an optional application of the split VAT is being contemplated for all business operators, less for those undergoing insolvency proceedings, according to the provisions of the Law No. 85/2014, and for the business operators who fail to meet their VAT obligations for a longer period of time," said Ionut Misa.
He also said that the business operators who have not applied yet for the split VAT payment mechanism may do so after December 31, 2017 as well. Misa added that he had taken into account the demands coming from the business environment and social partners. According to Misa, a series of measures with a beneficial effect on the business environment have been taken this year, including the modification of a condition that Romanian legal entities have to meet to be classified a micro-enterprises, levying a 1-percent tax rate on micro-enterprises with one or more employees, tax exemption for pensions below 2,000 lei and tax exemptions for transactions involving the transfer of real estate property from personal property with a value of less than 450,000 lei and levying a 3-percent tax on the value exceeding this threshold.
