Also, smaller companies, defined as those with sales below RON2.25 million, will be required to pay their bills and receive payment through the bank. When they are paid in cash, VAT is due when issuing the invoice, according to a draft ordinance published by the Finance Ministry.
To use the new system, companies must file a notice proving their turnover between October 1, 2011 and September 30, 2012 did not exceed RON2.25 million.
Making VAT due at invoice payment was suggested by the Government in July, with a wish that the system be applied immediately, but the IMF, European Commission and World Bank have stated the change needed additional research and may be introduced next year at the earliest. (EUR1=RON4.4924)