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The broken down payment of VAT will be postponed until 1 January 2018 (draft)

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The broken down payment of VAT will be postponed by three months,  namely to the 1st January 2018 but the people who opt for the applicaton of this system between 1 October – 31 December 2017 can benefit from some facilities, according to the amendments to the draft of ordnance regarding the broken down payment of the VAT by the ministry of public finances (MFP).

‘As a result of public consultations with the business environment, employers’ associations, trade unions, professional associations, including the ones represented in the commission for social dialogue, the ministry of public finances brought a series of amendments to the draft for ordnance regarding the broken down payments of the  VAT’ shows the press release of the MFP sent on Friday.

According to the quoted source, the amendments aim at the postponement of the optional application of the mechanism of broken down payment of VAT starting with 1 September 2017 to 1 October 2017, the postponement of the period of optional  application of the mechanism from one month to three months, 1 October- 31 December 2017 respectively, the postponement of the compulsory application of the mechanism of broken down payment of VAT from 1 October 2017 to 1 January 2018.

Similarly, there will be facilities for the people who opt for the application of the broken down payments of VAT between 1 October – 31 December 2017; the  annulment of the penalties of delay  for the fiscal obligations representing VAT, due on 30 September 2017, in some conditions or the bonification of 5% to the payment of the tax on profit or, according to the case, of the tax on micro-entreprises  income.

Other amendments to the draft of ordnance regarding the broken down payment of VAT aims at the extension of the deadline where the taxable people for VAT have  the obligation to  send to the account for VAT the VAT  for  the difference between  the collections and the payments in cash as well as the VAT for the payments with card or cash substitutes, from three days to 7 working days; the obligation of the taxable people to send their VATin the VAT account in a maximum of 7 days from the collection of the VAT for the bills issued before 1 January 2018 or, as the case goes, before the day when the mechanism is applied.

Last but not least, there is the register of the people who apply the broken down payment of the VAT organised by ANAF and where the people who opt for the application of the broken down payment of VAT between 1 October – 31 December 2017 and there is a deadline of maximum 3 working days when ANAF approves the transfer of the sums from the VAT account to the current account of the person.

In this context, MFP amends  the provisions regarding sanctions, establishing a period of grace of 7 days when errors can be corrected, and in the case of the errors which were not corrected within 7 days there is penalty of 0.06% per day from the value of the VAT but  not more than 30 days.

After the period of 30 days, or deeds such as not sending the VAT to the VAT account or the erroneous payment of the VAT account there is a fine of 50% of the sum representing VAT and for deeds such as not sending the Vat from the current account of the person or the payment of the VAT due to the  supplier from another account than the account of VAT there is a fine of 10% of the VAT sum.

According to the quoted source, the improved version of the ordnance draft is published on the site of the ministry of public finances at Decision Transparency.

The authorities announced at the beginning of August that they will introduce the mechanism of VAT broken down payment starting with 1 September  with the growth of the level of conformity to the  taxable people.

Recently, premier Mihai Tudose announced that the broken down payment of VAT will be optional for a period but starting with 1 January 2018 it will be compulsory.

 

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