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EY Romania: Treasury not prepared for split VAT, promised online functions not available
Transactions through treasury account need the physical presence at treasury locations, because promised online functions are not available. This is just one of the problems discovered after two weeks since the application of split VAT, the head of the fiscal and juridical assistance department of EY Romania, Alex Milcev considered in a press released issued on Tuesday.
The split VAT system is a first for fiscal practice in Romania, and two weeks after its optional application there were several problems, Milcev said. One of them is that transactions through the treasury account need the physical presence at treasury locations, since promised online functions are not available.
At the same time, adapting to demands of split VAT payment system increases the working time of the financial department, according to the complexity of operations.
In case of money withdrawals from VAT accounts, the available amounts have limited use and the withdrawal procedure to the current account was adopted this week.
“We could thus tested observing the three day deadline for the approval of money transfers from the VAT account to the current one. In case of tax payers who want to pay debts without VAT (credits, invoices without VAT from foreign suppliers), amounts from VAT account are not available. In case of taxpayers with limited financial resources, the access of a credit line may be necessary, attracting additional costs,” Milcev said.
EY Romania announced it supports the elimination of the application of split VAT or the implementation of alternate measures: the delay of payment split VAT until January 1, 2019 or the optional application in a simplified form.