From 1 October 2017, Romanian taxpayers registered for VAT purposes can choose to apply the VAT split payment system. It becomes mandatory as of January 2018.

Romanian tax authorities recently introduced by law, the value added tax (VAT) split payment system as part of its measures to combat tax evasion. The VAT split payment system will apply to all taxpayers, individuals or legal entities registered for VAT purposes in Romania, for all deliveries of goods and services rendered subject to VAT, for which the place of the taxable transaction is considered to be Romania.

In principle, it means that instead of paying the full amount of an invoice into one bank account, the total amount will be split by taxable base and VAT:

  • the taxable base will be paid into the regular bank account
  • the VAT will be paid into a designated VAT bank account of the vendor.

Romanian taxpayers can choose to apply the VAT split payment system from 1 October 2017. It becomes mandatory for all taxpayers in the country as of January 2018.


Taxpayers that apply the VAT split payment system from October will be required to open one or more bank accounts with the Romanian State Treasury or with commercial banks, and designate to them the payment of VAT related to transactions performed with their vendors and/or customers.

After opening the designated bank account/s, taxpayers must notify their customers / vendors of the new bank account details before any payments are processed.

Aspects of the VAT split payment system adoption that may impact taxpayers’ business include:

  • additional procedure to be applied for opening VAT bank account/s (documents and a signature specimen must be provided to the bank)
  • two payments are required for one transaction; strict tracking of the payments should be done by the customers in order to identify any case where VAT is not correctly paid
  • the outstanding report of accounts payable / accounts receivable must distinctly disclose the taxable base and the VAT
  • fines in high percentages / amounts will be applied by the tax authorities in case of non-observance of the law.

Under the split payment system, the onus is on Romanian taxpayers to understand the types of transactions that can be performed through the VAT bank account.