Romanian Senate approved a law draft whereby the payment of VATto the state budget will be done when the invoice is collected, notwhen it is issued only one week after a similar draft had passedthe same legislative chamber.
If such law drafts are promulgated, it would mean that, whilst atpresent a company is required to pay to the state by the 25th ofthe next month the VAT owed for an invoice issued, under the newregulation, the value added tax would have to be paid when theinvoice is collected, which, in theory, can occur even a yearlater.
Neither of the two draft laws is endorsed by the Cabinet, fearfulof a decline in budget revenues as a result of such a measure - theMinistry of Finance expects this to amount to 2.2 billion RON (540million euros) in the second part of 2010 and 2.5 billion RON (610million euros) in 2011.
In this case, the decisional chamber is the Chamber of Deputies,but interestingly enough both law drafts received significantsupport from ruling MPs, despite opposition from the Government.The situation could be replicated in the Chamber of Deputies.
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