During a Monday meeting with representatives of the National Union of Romanian Employers (UNPR), Romanian PM Mihai Tudose announced he will present shortly a new way of collecting the split VAT, which will answer to the requests submitted by representatives of the business environment. 

According to a Government statement, Tudose discussed with UNPR representatives the possibility to amend the split VAT payment mechanism, the transfer of social contribution obligations from the employer to the employee and improving the relationship between the state and the business environment.

According to PM Tudose, the VAT split payment will be ‘amended and made flexible’ in Parliament debates, in agreement with th proposals that came out of the talks with representatives of the business environment. The split VAT payment will not be applied to all companies starting 2018, but only for those that are in insolvency, are bankrupt, those with VAT debts and state-owned companies, the statement said.

“We will shortly come up with a new way of collecting the split VAT payment, which will answer to requests  submitted by representatives of the business environment,”  Tudose said. The decision to amend the mechanism was welcomed by UNPR representatives, who also said that passing the social contributions from the employer to the state is an opportunity that will not interfere with the net income of the employees.

The meeting was attended by deputy PM Marcel Ciolacu, MFP state secretary Daniela Pescaru, state advisors Ramona Lohan, Gabriel Andreescu and Felix Rache as well as other experts.