Senate - VAT payment only after getting the value of invoices, not before

Economic agents will pay VAT to the state after 30 days only since the moment they got the countervalue of the payment for services or delivered products, according to a legislative draft of PD-L senators, adopted on Monday by the Senate, with the help of PSD and UDMR representatives. The Senate plenary adopted the draft law which brings alterations to the fiscal code although, initially it was rejected by the budget-finances commission and had a negative viewpoint on the part of the government.

The initiators supported that, on the background of economic crisis, when many of the SMEs are already bankrupt or are insolvent  it is incorrect that the Romanian state get the VAT for sums of money the invoice issuers will never see. That is why they proposed to correctly collect the VAT meaning that it should be paid the moment the money gets to the invoice issuer.

On the other hand, the government did not support the adoption of the draft law, showing that by applying this measure there would be difficulties in collecting the income for the state budget. Moreover, the representatives of the executive drew the attention that the adoption of that legislative initiative will lead to a major impact on the budget at the beginning of applying this economic measure, due to the gap between the moment when the products are delivered or services provided and the payment of invoices, due to the lack of liquidity with economic agents.