The organization said the measure will not have the government’s expected outcome in curbing tax evasion but will only hurt honest businesses and possibly render the country’s entire economy vulnerable.
A recent poll by the SMEs council in Romania showed 97.5% of SMEs expect split VAT payments will have a negative impact on their activity in 2018. The organization said the huge percentage shows the magnitude of the government’s error in imposing an insufficiently analyzed measure.
Romania’s government adopted a decree making separate payment accounts for the value-added tax mandatory as of January 1, 2018 and expects to collect an extra RON6 billion to the state budget until 2020.