Recent changes to Romanian legislation introduced a “split-payment” mechanism, which is optional as of 1 October 2017 and mandatory from the 1st of January of 2017 onwards.
In this regard, please note the following:
• This system applies to taxable persons and public institutions VAT registered in Romania and, regardless of being or not VAT registered, also to companies and public institutions when carrying out payment of supplier’s invoices with VAT;
• Under certain conditions, the entities choosing voluntarily to apply the mechanism until 31 December 2017 may benefit from some incentives;
• Penalties are foreseen in case of non-compliance with the related obligations.
Source: 2017 September | VAT Systems
