Goal to close VAT Gap pushes debate on removing VAT cash payments
Source vatcalc
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Fiscalist: The generalized reverse taxation would push the VAT collection to over 600,000 companies. It can lead to collapse. It’s impossible to control
- Concerns About Generalized Reverse Taxation: Tax consultant Mariana Vizoli warns that implementing generalized reverse taxation could destabilize VAT collection by shifting responsibility to over 600,000 companies, risking significant revenue loss, especially if businesses become insolvent.
- Historical Precedents of Failure: Vizoli references past experiences, such as the unsuccessful implementation of reverse taxation during Romania’s EU accession, which led to a decrease in VAT revenues due to fraud and black market growth, indicating that similar issues could arise again.
- Impact on Utility Providers: The proposed system would particularly strain utility companies, which would have to manage VAT without immediate collection from consumers, increasing financial pressure on these firms due to high rates of bill non-collection and delays in payments.
Source Profit.ro
