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October 28, 2020
ECONOMY FINANCE&BANKING

PM Tudose: We will shortly come up with new form of split VAT collection

A new form of split VAT collection, which will respond to the requests made in this period by business representatives, will be presented shortly, Prime Minister Mihai Tudose announced on Monday in a meeting with representatives of the National Union of Romanian Employers (UNPR).

According to a Government release, altering the VAT split payment mechanism, the passage of social contributions from the employer’s task to that of the employee and the improvement of the state’s relationship with the business milieu were the main topics discussed on Monday at Victoria Palace by the prime minister with UNPR representatives.

Prime Minister Tudose said that the split VAT measure will be “modified and made flexible” in the debates in Parliament, in line with the proposals made in the discussions with the representatives of the business environment. The VAT split collection will no longer apply to all companies starting 2018, but only for those in insolvency, bankruptcy, with VAT debts, state-owned companies, the release said.

“We will soon come up with a new form of split VAT collection, which will respond to the requests made in this period by business representatives,” said the head of the Government.

In turn, UNPR representatives welcomed the Government’s decision to alter the differentiated VAT collection mechanism. At the same time, they stated that the passage of social contributions from the employer’s task to that of the employee represents, from their point of view, an opportunity that will not affect the net income of the employees, the press release says.

“The Prime Minister and the UNPR representatives have agreed on a periodic collaboration mechanism for proposing and analyzing measures to improve the state’s relationship with the business environment, stimulating employment and competitiveness, reducing bureaucracy, including in the sense of increasing the degree of absorption of European funds by the private sector and the promotion of Romanian companies on foreign markets,” the release says.

Also participating in Monday’s meeting at the Victoria Palace were Deputy Prime Minister Marcel Ciolacu, State Secretary with the Finance Ministry Daniela Pescaru, the Prime Minister’s advisers Ramona Lohan, Gabriel Andreescu and Felix Rache and tax specialists.

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