Starting from 1st of February 2020, Romania will eliminate VAT Split.
The Emergency Ordinance 78/2019 repeals the Government Ordinance 23/2017 stipulating VAT split system.
This measure required customers to pay the VAT amount of vendor’s invoices into a special and restricted bank account. This procedure created a major administrative burden and significant cash flow difficulties for companies doing business in Romania.
Hopefully, the cancellation of VAT split will bring normality, more disciplined payments between companies and will facilitate smoothly business relationship.
Iulia Lascau – Managing Partner Euroglobal Audit & Advisory and Argus Audit published this on LinkedIn at LinkedIn – Split VAT