VAT split payment system – the approval of transfers from VAT accounts

30/10/17

In brief

Order no. 2927/13 October 2017 (hereinafter “the Order”) regarding the application of the VAT split payment system has been published in the Official Gazette. The Order stipulates the procedure and conditions for the approval of the transfer of amounts from taxpayers’ VAT accounts requiring tax authority consent.

 

In detail

The Order details the procedure and conditions for the approval of requests for VAT amount transfers from dedicated VAT accounts to current accounts (under Ordinance no. 23/2017 regarding the VAT split payment mechanism) in specific cases, as follows:

  • Amounts resulting from payment corrections, for which the refund is made into an account other than a VAT account;
  • Amounts resulting from adjustments of the VAT taxable base, for which the refund is made into an account other than a VAT account;
  • Amounts transferred into the holder's current account opened with the same credit institution / Treasury unit, limited to the amounts previously transferred from the current account;
  • Amounts transferred into the current account of persons no longer required to have a dedicated VAT account and to pay VAT;
  • Amounts representing VAT paid in cash (excluding amounts deducted from cash receipts) or by card from the current account.

Thus, VAT account holders can request the transfer of these amounts from their VAT accounts by submitting an Application by electronic means to the e-guvernare portal, Submitting Statements section, for approval of transfer of the amounts from the VAT account (Form 310). Such requests may also be submitted to the relevant tax office’s premises or sent by post. Where appropriate, the application has to be accompanied by supporting documents, in certified copy, such as: statements of account, invoices, payment orders, contracts and any other supporting documents according to the nature of the sums required to be transferred from the VAT account.

Requests for funds transfer approval from the VAT account to another account will be decided upon within a maximum of three working days as of the date of application filing with the relevant tax office. After the relevant tax office performs the checks, the request may be solved as follows:

  • For the full approval of the transfer, the tax authorities will issue the decision directly;
  • For the partial / full rejection of the transfer, the taxpayer will be able to exercise their right to be heard before the decision is issued. For this purpose, the tax authorities will send the taxpayer an invitation and extend the decision deadline accordingly.

Taxpayers may appeal against decisions within 45 days as of the date of communication of the decision.

[Source: Order of the President of the National Agency for Fiscal Administration no. 2927 / 13 October 2017, published in the Official Gazette no. 813 on 13 October 2017]

 

The takeaway

Taxpayers will be able to request the transfer from their dedicated VAT accounts of amounts requiring tax authority approval by submitting a request to the relevant tax office.

Depending on the type of amounts, such requests will have to be accompanied by certain supporting documents, to be checked by the tax authorities.

Taxpayers will be able to appeal against decisions within 45 days as of the date of communication of the decision.

Contact us

Mihaela Mitroi

Partner, Tax Services, Romania

Tel: +40 21 225 3672

Ionuț Simion

Country Managing Partner, Romania

Tel: +40 21 225 3708

Daniel Anghel

Tax and Legal Services Leader, Romania

Tel: +40 21 225.3794

Diana Coroabă

Partner, Tax Services

Tel: +40 21 225 37 94

Ionuţ Sas

Partner, Tax Services, Romania

Tel: +40 21 225 3741

Contact us

Mihaela Mitroi

Partner, Tax Services, Romania

Tel: +40 21 225 3672

Ionuț Simion

Country Managing Partner, Romania

Tel: +40 21 225 3708

Daniel Anghel

Tax and Legal Services Leader, Romania

Tel: +40 21 225.3794

Diana Coroabă

Partner, Tax Services

Tel: +40 21 225 37 94

Ionuţ Sas

Partner, Tax Services, Romania

Tel: +40 21 225 3741

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