Issues Related to VAT Reporting

Written by: Bridgewest

Issues-Related-to-VAT-Reporting-1.jpgTaxpayers in Romania who needed to file the VAT return for January must wait for a clarification from the National Agency for Fiscal Administration (NAFA). The delay was caused by the changes in the new Fiscal Code. Our team of Romanian accountants can help you submit the necessary tax returns.

VAT reporting delayed by the Fiscal Code changes

The VAT return should have been submitted by all taxpayers until the 25th of February. However, the electronic platform implemented by NAFA for this purpose is not yet functional. The Value Added Tax has been significantly reduced starting with January 2016 and the form used for submitting the VAT report had to be updated by the Romanian authorities. 
The new model for Form 300 has been approved and published in the Official Gazette. Form 300 is submitted monthly by those taxpayers for whom the fiscal period is the same as the calendar month. The VAT return is submitted until the 25th of the following month. The experts at our Bucharest accounting firm can help you with the latest information regarding the necessary update and the earliest date at which you will be able to submit the new Form 300.

Significant changes related to VAT 

The new Fiscal Code that entered into force in January 2016 contains significant changes related to the value added tax rate and the returns submitted for this tax. Some of the most important include:
- the reduction of the standard VAT rate from 24% to 20%;
- the reduced 5% rate is now applicable to a wider range of services;
- the first VAT return submitted after the legal entity is registered with the fiscal authorities will not contain the cumulated VAT rate or the negative VAT amount, whichever the case;
- any difference in the VAT payment determined by the tax authorities until the submission date for the VAT return will not be included in the tax return.
The tax return form for the value added tax must contain information about the deductions the taxpayer is entitled to (the reduced 9% rate or the minimum 5% rate). Any data introduced incorrectly in the form can be updated in a special section entitled “regularization”.
If you would like to know more about the tax obligations in Romania or are in need of professional accounting services you can contact our Bucharest accounting firm.