Tax News (continued)

We continue to present tax news, a series of articles we started on Wednesday, May 3, 2017.

The Government Resolution approved on Thursday, April 27, was published on May 4, 2017 in the Official Gazette, thus entering into force.

The news from the Government Resolution on the tax on social security contributions

and VAT is:

Social security contributions:

Legislative correlations have been made regarding the removing of the limit of 5 gross average earnings in the case of salary and salary income, investment and other sources.

Regarding VAT:

• Introduction of procedural provisions on VAT deduction by taxable persons who re-register for VAT purposes after their registration code has been canceled and related to invoices issueing for goods deliveries and services during that period, so that the beneficiaries may exercise their right to deduct VAT on purchases made from those persons during the period in which they did not have a VAT code;
• Modification of the rules for adjusting the tax base of VAT in case of non-collection of the delivered goods or services value as a result of the reorganization or bankruptcy of the beneficiary, so that it is allowed within 5 years from 1 January of the following year to the one in which the Court decision confirming the reorganization plan has been pronounced, namely the Court order of closing the insolvency proceedings, under the sanction of forfeiture;
• Establishing procedural rules regarding the application of the new special flat-rate scheme for farmers, introduced by Government Emergency Ordinance no. 84/2016.