Romanian Senate approved a law draft whereby the payment of VAT to the state budget will be done when the invoice is collected, not when it is issued only one week after a similar draft had passed the same legislative chamber.
If such law drafts are promulgated, it would mean that, whilst at present a company is required to pay to the state by the 25th of the next month the VAT owed for an invoice issued, under the new regulation, the value added tax would have to be paid when the invoice is collected, which, in theory, can occur even a year later.
Neither of the two draft laws is endorsed by the Cabinet, fearful of a decline in budget revenues as a result of such a measure - the Ministry of Finance expects this to amount to 2.2 billion RON (540 million euros) in the second part of 2010 and 2.5 billion RON (610 million euros) in 2011.
In this case, the decisional chamber is the Chamber of Deputies, but interestingly enough both law drafts received significant support from ruling MPs, despite opposition from the Government. The situation could be replicated in the Chamber of Deputies.
Romanian Senate approved a law draft whereby the payment of VAT to the state budget will be done when the invoice is collected, not when it is issued only one week after a similar draft had passed the same legislative chamber.
If such law drafts are promulgated, it would mean that, whilst at present a company is required to pay to the state by the 25th of the next month the VAT owed for an invoice issued, under the new regulation, the value added tax would have to be paid when the invoice is collected, which, in theory, can occur even a year later.
Neither of the two draft laws is endorsed by the Cabinet, fearful of a decline in budget revenues as a result of such a measure - the Ministry of Finance expects this to amount to 2.2 billion RON (540
