ROMANIA: COVID-19 VAT IMPLICATIONS

Apr 1, 2020 | COVID-19

ROMANIA – Update 28th April

No import VAT is paid to customs during the state of emergency on PPE

 Romania published Emergency Ordinance No. 48 of 9 April 2020 in the Official Gazette on 16 April 2020. The ordinance includes certain measures for COVID-10 relief, including in relation to the extension of the state of emergency by an additional 30 days to 16 May 2020. Measures include:

  • Rules regarding sponsorship expenses of micro-enterprises are relaxed so that such sponsorships for supporting entities involved in combatting the COVID-19 pandemic can be deducted without the need for the beneficiary to be registered in the special registry for sponsorship beneficiaries;
  • In order to support essential employees that are required to work in isolation during the state of emergency, an exemption from income tax and social security contributions is provided on benefits in kind granted by employers;
  • An exemption is provided for taxpayers required to pay specific tax for certain special types of activities where the activities are suspended (partly or completely) during the state of emergency; and
  • The deadline for the submission of annual financial statements for the financial year ending 31 December 2019 is extended to 31 July 2020.

The Ordinance also includes a list of goods for which no import VAT is paid to customs during the state of emergency, including COVID-19 test kits, protective clothing, disinfectants and sterilization products, medical equipment and supplies, medications, and protective mask production machines.

 

Source Credit – Orbitax

ROMANIA – Update 17th April

Offices still currently open for face-to-face meetings but recommend remote interaction; the Government published measures to support the business environment including VAT credits.

 

Source Credit – Accordance VAT

ROMANIA – Update 25th March

  • Initially the Romanian Minister of Finance announced the deferment until the 25th April for the submission, however a different Urgent Government Ordinance has been published
  • The Romanian government maintain the deadline of submission of 25th of March for the VAT return and the ESPL, (30th March for the LSPL).
  • The Government stated that there will be no penalties applied for late payments of amounts due from 21st March 2020.
  • The penalty exemption will be maintained from the date when the Ordinance was issued and it will end 30 days after the ending of the state of emergency.
  • Submission is mandatory, however if there are issues with VAT payments, then the payments after the deadline will not be considered as a late payment

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