Ponta also said a decision to apply the fiscal measure will be made following talks with IMF officials.
Ponta made public last week the Government’s decision to change the VAT legislation in order to allow VAT payments upon cashing in invoices, instead of upon issuance, for companies with turnovers of up to EUR500,000. He also said at the time that VAT deductions will be allowed for projects financed from European Union funds and that the VAT deduction ceiling will be raised from 20% to 50% for investments in the Research & Development sector.
Finance Ministry state secretary Liviu Voinea said 92.8% of active firms in Romania report turnovers below EUR500.000, which accounts for over two million taxpayers to the state budget. According to Voinea, the fiscal measure won’t target intra-group firms, but it will help reduce the number of cases involving fictive VAT refunds.
Voinea also said Romania will implement, in upcoming months, a European directive forcing state institutions not to be more than 30-day late on invoice payments.
On July 4, Finance Minister Florin Georgescu said joint teams of the International Monetary Fund, the European Commission and the World Bank would come to Bucharest on July 24 or July 25 for a new review of a precautionary agreement signed in the spring of 2011.