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Romania fails to comply with EC obligations


Romania has recently received several reasoned opinions from the European Commission (EU) due to failure to comply with its obligations under EU law. Taxand Romania investigates the obligations under scrutiny. 

  • Alignment of the Romanian accounting legislation regarding the valuation and bookkeeping of purchased debts with the provisions of the EU legislation, according to which the items shown in the annual accounts shall be valued using a method based on the purchase price or production costs principle
  • Review of the current Romanian administrative practice regarding the VAT reimbursement term, in the context where, in practice, the settlement term for VAT reimbursement requests can exceed 180 days, such a term is not in line with the EU legislation, providing a swift VAT reimbursement in order to avoid an administrative burden for taxpayers
  • Review of the discriminatory tax treatment regarding personal and family deductions for non-residents deriving salary incomes from Romania, respectively the alignment with the provisions of EU Treaties and case-law (ie non-resident taxpayers deriving all or most of their income from an EU Member State should benefit from the same tax treatment as resident taxpayers)
  • Failure to fully transpose into the national legislation the provisions of the Directive on equality between men and women in self-employed activity (the transposition deadline expired on 5 August 2012), according to which female self-employed workers and assisting spouses or life partners of self-employed workers are granted a maternity allowance and a related maternity leave of at least 14 weeks, should they choose to take it
  • Supply of details regarding the transposition into the national legislation of the provisions of the industrial emissions Directive 2010/75/EU (integrated pollution prevention and control) of the European Parliament and of the Council, in the context where the implementation deadline of the Directive has been exceeded

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Your Taxand contact for further queries is:
Angela Rosca
T. +40 21 316 06 45

Taxand's Take

Romania now has 2 months to bring a satisfactory response to the European Commission regarding their failure to comply with these obligations. Should Romania fail in doing so, the European Commission may refer the country to the EU Court of Justice. 

Taxand's Take Author

Angela Rosca