Reverse taxation entails that transaction taxes will be paid by beneficiaries and not by entities that delivered the merchandise.
In December 2010, the country requested derogation from EU regulations to apply reverse taxation on intra-community trade with cereal and plants with industrial use. In January 2011, the European Commission’s Directorate-General for Taxation and the Customs Union endorsed Romania’s request.
In June 2011, the Government decided to apply reverse taxation on cereal for two years, until May 2013.
The Finance Ministry estimated at that time budget revenues from the tax would amount to 240 million lei (about EUR53.5 million) in 2011 and RON410 million in 2012. (EUR1=RON4.4834)