EC approves new threshold for VAT exemption in Romania
EC has approved Romania's request to continue the application of the measure allowing the exemption from VAT of taxable persons with an annual turnover not exceeding a specific threshold.
Articol de Florin Lepădatu, 20 Octombrie 2017, 12:37
European Commission has approved Romania's request, submitted in April this year, to continue the application of the measure derogating from Article 287 of the VAT Directive allowing the exemption from VAT of taxable persons with an annual turnover not exceeding a specific threshold, Romanian Ministry of Public Finance announced on Friday.
At the same time, Romania requested to increase the exemption threshold from the equivalent in national currency of EUR 65 000 at the conversion rate on the day of its accession (RON 200 000) to the equivalent in national currency of EUR 88 500 at the conversion rate on the day of its accession to the European Union (RON 300 000).
Thus, the Council Implementing Decision (EU) 2017/1855 authorizing Romania to apply the requested measure derogating from Article 287 of Directive 2006/112/EC on the common system of value added tax was published in the Official Journal of the European Union no. 265, from 10 October 2017.
Raising the threshold is expected to reduce VAT-related obligations for a number of small enterprises with reduced economic activity and to stimulate the activity of these small enterprises, as they will be relieved from a number of tax obligations such as filing of VAT returns or keeping VAT records. It is also anticipated that the increase of the threshold will reduce the burden of the tax authorities by removing the need to monitor the collection of a small volume of revenues from a larger number of small enterprises.
The normative document through which this Decision can be put into practice is currently debated in the Romanian Parliament.
When the legislative process will be completed, the Ministry of Public Finance will communicate to the public the date when the decision will start to be applied, Agerpres informs.
This Decision shall apply from 1 January 2018 until 31 December 2020, or until the entry into force of a directive amending the provisions of Articles 281 to 294 of Directive 2006/112/EC, whichever date is the earlier.
Source:RRA.Translated by Miruna Matei
