ROMANIA: Retailers’ association wants VAT reduction before 2016 | Progresiv
The large retail chains present on the Romanian market have asked the Finance Minister, Darius Valcov, that the VAT reduction to take effect earlier than January of next year in order to catch the year-end sales period, indicating that the reduction of VAT will be found on the shelves. 
The Finance Minister met with representatives of the Large Retailers in Romania Association (AMRCR) for consultation on changes regarding the Fiscal Code. Darius Valcov said that the VAT reduction announcement will be made with at least one month before the entry into force of the measure, so that traders will have time to make the necessary changes.
The Ministry of Finance proposed this month a generalized reduction of VAT from 24% today to 20% at the beginning of next year and to 18% from 1 January 2016.
In the case of VAT reduced to 9%, as in the case of flour, bread and bakery products in the present announcement will be made two weeks before the entry into force of the measure.
In the case of products with reduced VAT of 9%, as the case of flour, bread and bakery products, the announcement will be made two weeks before the measure’s entry into force.
AMRCR representatives indicated that they agree with foods selected by the Government for differentiated VAT of 9%, respectively meat, fish, fruits and vegetables. “The list (of selected products to reduce VAT to 9%) is covering. Such a measure will make tax evasion unprofitable for these categories”, said Florin Capatana, Vicepresident of AMRCR.
The Minister of Finance showed that reducing VAT on food from 24% to 9% has increased the taxed market by 23% and Romanian’s economies amounted to 295 million lei.
Regarding the Finance Ministry’s campaign to reduce tax evasion in commerce, Darius Valcov said that officials of the National Agency for Fiscal Administration (ANAF) will only realize prevention actions until 15 March, afterwards passing to penalize those who do not give fiscal receipts. "You will also see store closures," the minister added.
The Large Retailers in Romania Association has as members Cora, Carrefour, Auchan, Kaufland, Selgros, Metro Cash & Carry, Billa, Mega Image, Penny Market, Lidl, Praktiker, Dedeman, Hornbach and Mobexpert chains.
