VAT debts to companies amount to €440 mlnUpdated: 22-06-2009 |

The Romanian state is still due to reimburse some €441 million from the value added tax (VAT) arrear payments balance for the first five months of 2009, according to Finance Minister Gheorghe Pogea.

Of the total funds, some €186 million are deductions for four companies. Due to the high amount of money involved, verification proceedings are stricter and take longer, Pogea told Business Standard in an exclusive interview.

The Minister committed to have VAT reimbursements made as soon as possible to all companies. President Traian Basescu had asked the ministry to speed up arrear payments to companies.

"Together with [National Fiscal Administration Agency] ANAF, we have developed an application which shows the amounts that the state must deduct, by county. We want to have reimbursement rules, equal treatment for all, rather than having some receive the funds earlier while others receive these in three or four months," Pogea said. He issued a warning to companies who request to be reimbursed for VAT, but lack the necessary documentation to prove that they are entitled to this, that they will not receive these funds, and will be considered "high risk companies." Businesspeople have said that the ministry's attitude towards VAT payment is not correct. They indicated that there is always a three-four month delay in VAT reimbursement, and companies are having difficulties coping with this during the economic crisis.

"The group that I represent is due to receive funds worth some €1.5 million in VAT reimbursements, and part of these payments have been due since October of last year," according to Dan Sucu, owner of the Mobexpert furniture retailer and producer. On the other hand, Pogea said that the ministry will target euro-denominated loans in the second half of 2009, through a Eurobond issue, with interest rates even lower than 6-7 percent and maturity in 2014, provided conditions on the international market improve.

Business Standard