Romania: VAT split-payment mechanism - KPMG Global
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Romania: VAT split-payment mechanism legislation is enacted

Romania: VAT split-payment mechanism

Legislation on the value added tax (VAT) split-payment mechanism has been passed and published in the official gazette.


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The legislation was proposed in August 2017 (read an August 2017 report on the draft legislation) and then enacted at the end of the month.

The VAT split-payment mechanism will be optional beginning 1 October 2017 for invoices issued / advance payments received starting from 1 October 2017. It will be mandatory beginning 1 January 2018, for invoices issued / advance payments received starting from 1 January 2018.

For the VAT split-payment mechanism to be implemented, payments/cashing conducted by taxable persons in Romania must be made from a distinct VAT account. All taxable persons and public institutions registered for VAT purposes will be required to open a separate VAT account for receiving and making VAT payments.

VAT accounts will be opened, by default, with the various treasury units within the tax offices where taxpayers are registered. However, any taxpayer can opt to open an account with a commercial bank (although, currently, not all banks operating in Romania have the relevant infrastructure to open these types of bank accounts).


Read a September 2017 report [PDF 447 KB] prepared by the KPMG member firm in Romania

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