The National Agency for Fiscal Administration (ANAF) is prepared for a split Value Added Tax (VAT) collection system and we can deal with problems that may arise, ANAF Deputy Chairman Daniel Florin Anghel told a specialist conference on Thursday.
“ANAF has been very well prepared and there will be no problems with implementing Ordinance 23. Any problem that might arise are analysed and we will certainly deal with it. Since the ordinance came out, all our local departments and professional departments have met, and problems have been scrutinised. Should problems arise, we will certainly deal with them with your support from the ministry,” said Anghel, interrupted by attending business execs, who added to his statement “using our money.”
He later added that if there were any problems they would be solved.
He also mentioned the ANAF IT system that needs to be changed, and the training of ANAF employees that needs to be improved.
PwC Romania on Thursday held a conference on switching to a split VAT system and the impact of the new system on Romanian companies and banks.
PwC’s Anghel : National budget fails to get about 38pct of VAT
Romania’s national budget fails to get about 38 percent of due Value-Added Tax (VAT), and Romania does not fare well as far as collected VAT is concerned, Daniel Anghel, head of indirect rates and taxes at PwC Romania, told a specialist conference on Thursday.
“Romania does not fare well as far as collected value added tax is concerned. It has been on a downward trend, with a negative record, unfortunately being last in terms of VAT collection, that famous VAT deficit that it could theoretically be able to cash in. About 38 percent of due VAT fails to get collected,” said Anghel.
He noted that the deficit is a combined result of fraud, errors, tax planning, bankruptcy, insolvency, and VAT exemptions.
“The split VAT is the Government’s proposition to collect about 6 billion lei of what is being declared and not paid or paid late. Theoretically, what lies at the origin of the split VAT is the idea of reducing tax evasion, at least theoretically. In practice, this system could identify tax evasion only to the extent that ANAF [National Agency for Fiscal Administration] has an automated and efficient risk analysis to know in real time the taxpayer’s tax evasion profile,” said Anghel.
“The Romanian Government has passed legislation to set up the split VAT system, which will be applied as of October 1, 2017 and become mandatory as of January 1, 2018. This new system could generate major cash flow difficulties for companies, generating additional costs and requirements for taxpayers related to the adjustment of their IT systems and accounting applications, payment management and changes in internal operating procedures,” said the PwC Romania official.