The Romanian Government is planing to introduce the Value Added Tax (VAT) for acquisitions of cereals, vegetables, fruits, meat, fish, flowers, sugar and construction materials within the European Union, according to a draft project quoted by Mediafax newswire. For the same products sold within the country, the beneficiary will support the taxation. “A special document will be created for paying VAT for trade within the EU with these goods. However, the other EU stipulations on the deductibility of the tax paid for these acquisitions, so that it won't impair upon the internal market, which would be severely sanctioned by the EU,” writes the draft document.

The inverted tax for trade with these products in Romania is applied only for companies registered as VAT payers. The person who is obliged to pay the tax is the beneficiary, not the supplier. The VAT collection is made at the end of the circuit and the loss caused by a chain of intermediary buyers is diminished.

These proposals however are not complying with the EU legislation, so the Finance Ministry has proposed to apply these only until the end of next year.