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EY: In 2019 infringement procedure on VAT payment mechanism can go on
The European Union sent Romania, last Fall, a formal notification about the VAT payment mechanism, while in 2019 Romania will have to take measures in this respect, otherwise the infringement procedure could go on, Ioana Iorgulescu, Associate Partner Indirect Taxes EY Romania, at the 13th edition of the EY Annual Fiscal Conference.
“In November 2018, the European Commission sent Romania a formal notification about the VAT payment mechanism, in which it is asked to stop applying it, making the first step toward infringement. As a result, in 2019, Romania will have to take measures in this respect, otherwise the infringement procedure could go on,” Iorgulescu said.
She said 2018 did not bring major amendments to VAT law.
Moreover, the so called quick fines, rapid solutions adopted at the end of 2018 in EU will have to be implemented in Romania in 2019. They refer to intra-community goods trade and are meant to reduce fraud in the field of VAT.
“Amendments in the fiscal field for construction industry raised many questions about implementation ways. Will these changes solve problems raised in this domain about the labour force deficit and fiscal evasion?” said Stela Andrei, Director, Income Tax and Social Contributions EY Romania.
“2018 started under the sign of fiscal revolution: moving contributions, split VAT, new restrictions to reduce financing costs. It seemed that year would be one of settling amendments already introduced. But in the last days of 2018, the government came with a new, unexpected package of fiscal measures which surprised tax payers and even state authorities. Other changes will come up soon. So, our appeal to the predictability of fiscal law is and remains topical,” said Alex Milcev, Partner, Leader of Fiscal and Juridical Assistance, EY Romania.
During the Annual Fiscal Conference, EY specialists approached themes about fiscal regulations in Romania with impact on fiscal reports, direct and indirect taxes, as well as the latest evolutions in the fiscal field and of fiscal procedures at global level. The themes include 2019 tendencies in the fiscal field and the need to transform Romania, Romania’s fiscal strategy and its alignment to international tendencies, amendments of fiscal laws with impact for 2019 in the field of direct and indirect taxes or 2019 challenges about income taxes.