Major change announced by PM Tudose: Split VAT could be mandatory only for distressed SOEs

Ovidiu Posirca 10/10/2017 | 09:26

PM Mihai Tudose says that the split VAT system, which is optional starting October, could become mandatory only for distressed state-owned enterprises.

Initially, the system should have become mandatory for all companies as of January 2018, despite warnings coming from the private sector.

The measure “will be applied only for state-owned enterprises, which are under administration or in bankruptcy,” said the PM.

His statement came after the head of the PSD, Liviu Dragnea, said that the ministry of finance has to state his own opinion on the system, whether it should become mandatory or not.

Read more about the impact of the most recent fiscal measures, including split VAT

With a VAT gap of around 37 percent, Romania has missed around EUR 7 billion in uncollected VAT in 2015, according to Eurostat, the statistics office of the EU. This was the biggest gap across the EU. Meanwhile, companies say that the split VAT should remain optional as it generates additional costs for business owners.

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