FinMin Misa: Under new amendments, tax authorities will be able to refuse VAT deduction

The amendments to the Tax Code have special provisions for the instances in which the tax authorities may refuse to grant Valued Added Tax (VAT) deductions in order to avoid possible abuses from them, Finance Minister Ionut Misa told a government meeting on Wednesday. 

"There are explicit provisions for the instances in which the tax authorities may refuse to grant Valued Added Tax (VAT) deductions, as resulting from the case law of the EU Court of Justice. The measure is designed to clarify the situations where tax authorities can refuse to grant VAT deductions in order to avoid possible abuses on the part of the authorities (...) I think it is an extremely important measure to the Romanian business environment, a long-awaited measure. There has been a lot of talk in the public and business environment regarding the non-granting of VAT deductions for chain purchases. In fact, an honest and fair economic operator who has acquired an asset or contracted services and made a payment for these services transparently has been unable to deduct the VAT because a fourth or a fifth supplier in the chain did not pay the VAT to the state. Such a situation generated by the tax authority will be virtually impossible in the future," said Misa. 

He added that another measure targets excise duties and special taxes. 

"This is also about the introduction of a complementary penalty in the form of seizure of containers and means of transport used for the transport and storage of excisable products not properly labelled or marked or with false markings. The measure is extremely necessary to prevent and combat tax evasion and, at the same time, to ensure a fair competitive environment," Misa said. AGERPRES .