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Threshold for VAT Registration Increases
On 30 August 2011 Romania requested the European Commission's authorisation to derogate from the current threshold of EUR 35,000 related to the registration for VAT purposes applicable to small enterprises. Taxand Romania discusses the effect this is likely to have on Romanian small businees taxpayers.
Through the Council decision published on 26 March in the Official Journal of the European Union, Romania was authorised to increase the annual threshold for registration for VAT purposes to EUR65,000 computed at the conversion rate on the day of its accession to the European Union.
The increase of the threshold is a simplification measure aimed to reduce the VAT reporting obligations of the smallest of businesses.
The decision will take effect as at 30 March 2012 and is applicable until the entry into force of a Directive for amending the annual turnover threshold or until 31 December 2014, whichever comes first.
In the next period, we should see how the Decision will be implemented in the national legislation and whether any transitory measures will be introduced in this respect.