A Brief On The Modifications In Romania’s Vat Legislation

By Author: martin well
Total Articles: 364
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The Government of Romania has introduced an array of changes to its VAT legislation. The amendment includes an increase in the VAT registration threshold, tax authority’s right to de-register taxpayers and VAT related deductions for purchase of vehicles.

Revised VAT registration threshold
• The VAT registration threshold has been increased from € 35,000 to € 65,000, effective from July 1, 2012.
• Taxpayers who have declared or realised an annual turnover not more than € 65,000 may apply to register for VAT on a voluntary base, excluding those who supply intra-community deliveries of new means of transportation.
For taxpayers with a turnover not more than € 65,000, obligations for tax declarations have been made simpler, and in order to apply these regulations, transitional provisions have also been provided.

De-registration of VAT
• Romanian tax authorities hold the right to de-register taxpayers who do not, in a period of six months:-
• Submit VAT returns,
• Disclose their VAT return acquisitions or deliveries of goods and rendering of services.
...
... VAT Deduction for Vehicles

Only 50% of input VAT for acquisitions of vehicles and other expenses linked to these vehicles will be deductible for VAT calculation purpose with effect from July 1, 2012.
100% of Input VAT will be deductible if vehicles are used:
• For emergency services, safety and protection, courier activities
• For sales persons and acquisitions
• For transportation services rendered by authorised companies
• For paid rendering of services, according to the object of activity of companies, and
• For to-be-leased vehicles
• For vehicles considered as goods for trading activities.
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