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The split Value-Added Tax (VAT) payment mechanism should be abrogated as it hasn't had any positive effect and Romania is criticised by the European Commission for this, Dan Manolescu, the President of the Chamber of Tax Consultants (CCF) stated on Friday at the "Autumn tax update forum" conference.
"As far as we know, there are some letters, a correspondence between the European Commission and the Romanian authorities, wherein the latter requested a series of details. It seems, based on the way they understand things, the system we have is not quite alright. We are waiting for them to do something concrete, trigger the infringement or do something in that regard," Manolescu affirmed.
"I personally haven't heard of anybody who stood to gain from it. Losing, yes, I have heard, but something good, no. Somebody must force an abrogation, and in this situation the Commission is the only one capable of doing it, in a context in which the parliamentary majority keeps being the same and I do not think that an abrogation decision can come from the Gov't," Manolescu further said at the conference organised by BusinessMark and PKF Finconta.
As of 1 March, the split Value-Added Tax (VAT) payment mechanism for the companies going bankrupt and for those that have incurred debts at the VAT payment, up to a certain ceiling is mandatory.
