Change on VAT Procedures and Collection Proposal

The government has proposed a change on the VAT procedures and collection. Among other tax measures, the draft bill includes:

• A VAT provision account for excess deductible VAT
• Replacement VAT assessment for late filers
• VAT assessment in case of late submission of required documents
• VAT refund conditions and payment timelines
• Tax collection register notification
• The means of payments to settle the tax due

This bill is planned to come into force from 1 January 2024.

Temporary Reduced VAT Rates on Certain Products Extended

The Greek Ministry of Finance informed in a press release that the temporary reduced VAT rates will apply until 31 December 2023 (instead of 31 June 2023) to transportation, catering services, cinema tickets, coffee and non-alcoholic drinks, tourism, zoo tickets, gyms, and dance schools as well as for the import of artwork, art collections, and antiquities. Such extension will only become effective after published in the official government gazette.

Temporary VAT Reduction on Certain Products and Services Extended

Among other tax measures, the government has announced the extension of the temporary VAT reduction to 9% on gas and electricity, until 31 October 2023, and on tourism and hospitality until 31 August 2023.

Circular on VAT Treatment of Imports of Goods for Containment and Management of Pandemic Updated

According to a recent circular published by the Italian tax authority, from 1 January 2023, instead of being zero-rated, imports of COVID-19-qualified vaccines are now subject to the reduced VAT rate of 10% and diagnostic equipment for COVID-19 is subject to the super-reduced VAT rate of 5%.

“SLIM VAT 3 Package” Bill Submitted to Parliament

The “SLIM VAT 3 Package” bill, providing further simplification of VAT settlements, was submitted to the parliament. If approved, the bill will come into effect on 1 April 2023.

Request for VAT Registration Included in the Trade Register Procedure

As from 20 January 2023, the form for initial VAT registration (i.e., “Request for fiscal registration”) must be included among the documents required for the registration of a company at the Romanian Trade Register and not under a separate additional VAT registration procedure. This is applicable to established entities in Romania.