Government of Romania Introduces Changes to VAT Legislation

The Government of Romania has introduced an array of changes to its VAT legislation.

Sunnyvale, CA (prHWY.com) June 27, 2012 - (Sunnyvale, CA) - 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.

Please call/email for more details.
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Tag Words: reporting, tax for expats, romania vat legislation, vat legislation, romania changes, international financial

Categories: Business

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