Law no. 275/2017 modifies the VAT split payment system, approved by GO no. 23/2017. The normative act entered into force on 1 January 2018.
There will be required to apply the VAT split payment system to taxable persons registered for VAT purposes if they have outstanding VAT payments on 31 December 2017 and have not paid their debt to the budget by 31 January 2018.
Through overdue VAT debts we understand amounts higher than 15,000 for large taxpayers, more than 10,000 for medium taxpayers and 5,000 for small taxpayers.
They will also apply the VAT split payment system on January 1, 2018 to the VAT registered persons who were in the scope of insolvency law on 31 December 2017. In the event of non-payment of outstanding VAT on 31 December 2017, the entry into the split VAT payment system will take place on 1 March 2018.
Thus, we can identify the following situations:
A company registered for VAT purposes which is not in any of the situations mentioned above and is practically not required to apply this mechanism has the obligation to pay the VAT deducted to its supplier of goods and / or services that apply the VAT split payment mechanism. Thus, a beneficiary will pay to a supplier applying the VAT split payment mechanism the value of the VAT related to the purchases of goods / services in the VAT account communicated by the supplier.
There are exempt from this rule: