Law no. 275/2017 (“the Law”) for the approval of Government Ordinance no. 23/2017 regarding the VAT split payment mechanism, as well as the Decree no. 1309/2017 enacting the Law have been published, bringing amendments and changes regarding the VAT split payment system (“the system”).
The main clarifications and changes brought, applicable as of 2018, refer to the following aspects.
The system is to be applied mandatorily by the following categories of taxpayers:
1.1 Taxpayers that have as at 31 December 2017 outstanding VAT liabilities as per the Fiscal Procedural Code (excluding the suspension of enforcement through the submission of a bank letter of guarantee) and have not paid them by 31 January 2018:
1.2 Taxpayers that have as at 1 January 2018 outstanding VAT liabilities as per the Fiscal Procedural Code (excluding the suspension of enforcement through the submission of a bank letter of guarantee) and that do not pay them within 60 business days, at the same levels as above;
1.3 Taxpayers in insolvency or insolvency prevention procedures.
The system will continue to be optional for all eligible taxpayers not required to apply the system on a mandatory basis.
The following taxpayers are required to notify the relevant authority that they are applying the system:
The system applies mandatorily as follows:
The system could stop being applied in the following situations:
Taxpayers registered for VAT purposes not applying the system, making purchases from those which apply the system will be required to make split payments.
The following categories, which do not apply the system, will not be required to apply the VAT split payment when making purchases from taxpayers which do:
If beneficiaries do not pay VAT into the supplier's VAT account, the supplier will be entitled to transfer VAT into its own VAT account.
Beneficiaries will not be sanctioned for not paying VAT into the supplier's VAT account if the supplier proves that it transferred the amount into its own VAT account.
If a beneficiary does not pay VAT into the supplier's VAT account within 30 business days as of the date of the incorrect payment and if the supplier does not transfer that VAT into its own VAT account within the same period, the beneficiary will be subject to a penalty of 0.06% of the tax due, per day of delay.
The system does not apply to the following specific payments:
The deadline for VAT transfers into one’s own VAT account will be of 30 business days for certain types of operations provided by the law (e.g. transactions with credit / debit cards or cash substitutes, cash transactions). Taxpayers with garnishments on their accounts will not be required to transfer VAT into their own VAT accounts.
ANAF approval will no longer be required for debiting one’s own VAT account (in situations permitted under the law). In addition, debiting of the VAT account will be allowed for the payment of any state budget obligations (not just VAT obligations).
Enforcement orders on VAT accounts can be executed for the payment of any outstanding budgetary obligations (not just VAT obligations).
As of 1 January 2018:
©  [ PricewaterhouseCoopers Tax Advisors & Accountants S.R.L ]. All rights reserved. PwC and PricewaterhouseCoopers refer to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. At PwC, our purpose is to build trust in society and solve important problems. PwC is a network of firms in 158 countries with more than 236,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.ro.