VAT News

Romania-Split payment method proposed

The Romanian tax authorities has released draft legislation under which taxpayers (both established and non-established in Romania) would be required to open a specific bank account to collect payments of Romanian VAT.

The proposals, which if enacted would be optional from 1 September 2017, or compulsory from 1 January 2018, state that all taxpayers must open a bank account either with the Romanian treasury or a Romanian bank, and VAT payments from customers must be paid directly to this account. The account must contain the reference 'TVA' in the IBAN reference number.

Once opened, the account is to be used only for VAT payments, and cash withdrawals must not be made without the permission of the Romanian tax authority.

More details are due to be announced in due course.

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