Split Payments – Measure against Fraud Practices

After Poland, the Romanian tax authorities put in place a split payment system. Businesses (including non-established ones in Romania) will be required to open a specific bank account to collect payments of Romanian VAT.

Optional for now, it will be compulsory as from 01/01/2018.


Registration in the Registry if intra-EU Operators

Foreign companies supplying intra-EU transactions as from Romania must be registered in the Registry of intra-EU Operators [RIO] before performing such operations.


EU Commission requests Romania to change its VAT refund practice

The European Commission has formally requested Romania to change its administrative practice of refunding VAT. Almost all VAT refund claims are systematically settled with unreasonable delays, sometimes taking over 180 days. This practice is not in line with EU VAT rules which foresee that VAT should be refunded swiftly so as not to create a burden for taxpayers. Even if Member States have a certain margin of manoeuver in determining refund conditions, Romanian taxpayers bear the burden of VAT for too long as a result of the current delays. The request of the Commission takes the form of a reasoned opinion [the second stage of an infringement procedure]. In the absence of a satisfactory response within two months, the Commission may refer Romania to the EU's Court of Justice.