Elimination of VAT-SPLIT

We remind that from 1 February 2020 the provisions of the Government Ordinance (OUG) no.23 / 2017 regarding the breakdown of VAT is totally repealed.

The abolishing act, from February 1, 2020; the split TVA- Ordinance, appeared in December 2019 in the Official Gazette, along with the related transitional measures.

Government Ordinance (OUG) no. 78/2019 provides the elimination of the Split VAT mechanism from February 1, 2020, which is currently regulated by Government Decree no. 23/2017.

We mention that, until the date of entry into force of the new regulations, no tax body no longer registers persons in the special register for the taxpayers who apply the system of VAT payment.

Those who have applied the mechanism so far must know that the VAT account in which they paid the tax can be enforced by any creditor, whatever the type of debt he has to recover.

The VAT accounts from the Treasury automatically opened to those who applied the mechanism but will remain locked for the owners until February 2020.

From February, the Treasury will automatically transfer the money from those VAT accounts to the other accounts that the taxpayers have opened there or, if they have no other accounts, to those indicated by the taxpayers. Other transactions in the VAT accounts from the Treasury will no longer be possible since February.

Within 10 days from February 1, 2020, taxpayers who have applied the VAT breakdown mechanism and have not opened an account with the State Treasury will communicate to the State Treasury unit the number of the current account opened at a credit institution in which the respective amounts are transferred.