VAT simplification measures (Government Emergency Ordinance no. 49/2011, published in the Official Gazette no. 381 / 31 May 2011)

The Government Emergency Ordinance (GEO) introduces VAT simplification measures applicable to supplies of cereals and technical crops specifically mentioned in the combined nomenclature established through the CEE Regulation no. 2,658/87.

Thus, for the supply of the above-mentioned cereals and technical crops, the person liable to pay the tax is the beneficiary, through the reverse charge mechanism.

The mandatory condition to apply the reverse charge mechanism is that both the supplier and the beneficiary are registered for VAT purposes according to article 153 of the Fiscal code.

This simplification measure is applicable up to 31 May 2013 inclusively.

By Venkatesh Srinivasan, Partner – Head of Tax and Legal, Ernst & Young Romania

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