Changes for SMEs Regarding Public Auctions

Written by: Editor

Changes-for-SMEs-Regarding-Public-Auctions.jpgSmall and medium-sized companies participating in public actions no longer benefit from the reductions that would have been applicable to them in these case, according to their turnover. The guarantee for participation and the guarantee for compliance were also abolished. The recent changes were included in a legislative document that was published in the Official Gazette. Our Romanian accountants are able to tell you more about these obligations.

Small companies disapprove of the new changes

Emergency Ordinance no. 58/2016 amends the current legislation on procurement and public auctions. It appeared in the Official Gazette earlier this months and its provisions become effective starting with its publication date.
The Ordinance changes Law no. 346/2014 regarding the benefits awarded to small and medium-sized corporations in respect to the procurement of goods, works and services. The new legislative document also changes their benefits on participation guarantee and performance guarantee.
The National Council of Small and Medium-Sized Private Enterprises in Romania offered a prompt answer to this change, stating that this is not the best possible approach because a very large number of SMEs in Romania will be influenced by this change. Officials from the National Council of Small and Medium-Sized Private Enterprises have also requested the Government to revise the legislative document. Their argument is that these types of companies don’t usually participate in public acquisitions having an estimated value of over ten million euros.
If you own an SME in Romania, the experts at our Bucharest accounting firm can evaluate your case and give you detailed information about how you will be able to engage in future public procurement actions. 

The same requirements for public actions regardless of company size

The new Ordinance for public acquisitions changes the manner in which small and medium-sized private enterprises in Romania are allowed to participate in public acquisitions and conclude the contracts that derive from these auctions. According to the new rules, the same types of regulations will apply to all companies, regardless of their size.
The change was implemented following a request submitted by the European Union. According to EU officials, these benefits awarded for SMEs in the case of public procurements were discriminating.
For detailed information about taxation and compliance for SMEs in Romania please do not hesitate to contact our Bucharest accounting firm.