Romania: Changes to December-approved Tax Amendments

Romania: Changes to December-approved Tax Amendments

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According to Romanian Official Gazette no. 262/31 December 2020, some tax amendments that were approved on 21 December 2020 have been changed as follows:

  • Deliveries of medical equipment for in-vitro diagnosis of Covid-19, vaccines against Covid-19, as well as related vaccination and testing services are VAT-exempt until 31 December 2022;
  • The reduced 5% rate for VAT on the sale of housing below EUR 140,000 and 120 m2¬†will apply starting on 1 January 2022;
  • The 100% deductibility of adjustments for impaired receivables will be effective starting on 1 January 2022; until then, the 30% deductibility will continue to apply;
  • Specific corporate income tax payers do not owe specific tax for a period of 90 days starting on 1 January 2020;
  • Requests for cancellation of late payment interest and penalties can now be submitted between 1 January 2021 and 31 March 2021. The initial term ended on 15 December 2020;
  • Decisions on VAT refunds will be issued in subsequent tax audits by 31 March 2021.

By Carmen Mazilu, Associate, Noerr