INTRODUCTION OF VAT SPLIT PAYMENT MECHANISM IN ROMANIA – COMPULSORY VERSUS OPTIONALLY

Nicolae Ecobici and Busan Gabriela
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Busan Gabriela: CONSTANTIN BRANCUSI UNIVERSITY OF TARGU JIU

Annals - Economy Series, 2017, vol. 1Special, 116-121

Abstract: The objective of this article is to analyze the implications of introducing the VAT split payment mechanism in Romania, as it is regulated, as a compulsory system, through GO 23/2017 respectively, as well as in the case of the modification of the regulation in the sense of replacing the compulsory by optionality. We will analyze the effects of Ordinance 23/2017 of the Romanian Government regarding the mandatory distinctly payment of VAT for Romanian legal persons, registered or not for VAT purposes, as well as the result which the Government hopes to obtain as a result of the application of this provision, on the one hand. On the other hand, we will discuss the effects of a change in regulation for the optionally application of the VAT split payment mechanism, as of January 1, 2018, as compared with the amendments already approved by the Romanian Senate on October 31st, 2017. The structure of the article includes the following main sections: a briefly presents of the VAT split payment mechanism, as it was originally regulated by GO 23/2017; the second part includes the analysis of the implications of introducing the VAT split payment mechanism on legal entities and the state, in the initial phase of the Ordinance; the third part is devoted to the presentation of the amendments approved at the end of October 2017, respectively to the recommendations on amendments needed to be taken into account by the Chamber of Deputies, and the last part will include the conclusions and recommendations.

Keywords: optional mechanism; mandatory mechanism; minimum threshold; VAT split payment mechanism; implications; own VAT account (search for similar items in EconPapers)
Date: 2017
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