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August 10, 2022
BUSINESS

Reverse charge for grain may be extended to meat, vegetables

The VAT reverse charge for grain and industrial plants could slice by half the specialized black market, estimated at EUR 14 bln, if accompanied by the fast recovery of VAT, the executive director of the Romanian Federation of Agricultural Producers, Daniel Botanoiu, stated, quoted by Mediafax. At the same time, the reverse charge system could be extended from grain to the commerce of meat and vegetables, Mircea Toader, the leader of the Chamber of Deputies’ Democratic Liberal Party (PDL) group, stated, on Friday, in a press conference in Galati, HotNews reports.

On the other hand, Botanoiu called for a collateral measure to assist farmers, such as the granting of subsidized-interest loans, adding that the acquisition form currently in use encouraged the tax-dodging market and should be replaced with a producer’s certificate. The chairman of the Romanian Association of Agricultural Produce-Traders, Victor Beznea, stated, in turn, that the VAT reverse charge on grain and industrial plants was a beneficent measure for the farming chain, which would contribute to more effective checks by the National Tax Administration Agency (ANAF). According to the latter’s estimates, reverse charge will bring an extra EUR 500 M to the state budget.

However, for this ordinance to be enforced, farmers have to be told what they are to do, in concrete terms, Tudor Dorobantu, the deputy president of Agrostar, argued, quoted by “Financiarul”. “However, this cannot be done, as the Finance Ministry has yet to release the norms for its application. It is common knowledge that a law can take effect only when it comes with the ‘user’s guide’. Or, these norms have to be drafted  within 30 days since the Emergency Ordinance is published in the ‘Official Monitor’, that is, by early June,” the latter added. According to Dorobantu, this year’s first crop of grain may lose the benefits of the reverse charge system.

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