Announcement to the small business to be included in the VAT scheme

Dear small business taxpayers! 

As of April 1^st, 2018, the threshold for VAT registration of ALL 2,000,000 shall enter into force.

Registered in this tax liability shall be any taxpayer that:

• Sells goods or provides services, that for the calendar year of 2017 has reached a turnover of more than ALL 2,000,000;
• Is existing or newly registered, that estimates to reach a turnover above this threshold during 2018.

The taxpayer that exceeds the minimum threshold of VAT and, therefore, undergoes the normal regime of VAT, shall be entitled on the very first month when he becomes a registered taxable person, to recognize the deductible VAT for inventory goods in stock on the date of registration in this regime, which are intended to be sold and for which he shall calculate VAT when sold.

Therefore, the taxpayer:

• shall draft the list of goods in stock, specified in quantity and value, identifying the date of registration of stocks.
• the inventory shall be submitted at the regional directorate, upon registration in the normal regime of VAT.
• any goods included in inventory shall be justified with a VAT purchase tax invoice, purchased not before than 12 months.

Every taxpayer registered for the first time in VAT:

• shall communicate with the authorized company that has supplied the fiscal equipment, to make the change in the tax rate of VAT for purposes of issuing a tax coupon with VAT as of April 1^st, 2018;
• shall be supplied with VAT tax invoice books at the Regional Directorate of Taxes where registered, that are issued for transactions above ALL 40,000, or when the buyer will ask for one from the salesperson;

The invoices of sales and purchases shall be registered chronologically in the book of sales and book of purchases.

• The book of sales and purchases shall be kept for a monthly-based tax period.

For those taxpayers registered for Simplified Profit Tax with an annual turnover from ALL 2,000,000 – 5,000,000, the books shall be submitted electronically on quarterly basis, not later than 10^th of the coming month of the quarter period they belong to.

More specifically, the declaration of sales and purchases books kept for April, May and June 2018 from taxpayers registered since April 1^st, 2018, shall be done by July 10^th, 2018.

• The VAT declaration shall be drafted by each taxpayer based on the books of sales and purchases data.

For those taxpayers registered for Simplified Profit Tax with an annual turnover from ALL 2,000,000 – 5,000,000, the VAT declaration, drafted for a monthly tax period, shall be submitted electronically every three months by 14^th of the coming month of the respective quarter (not later than July 14^th, October 14^th, January 14^th and April 14^th).

More specifically, the VAT declaration of April, May and June 2018 shall be submitted electronically by July 14^th, 2018 by the taxpayers registered since April 1^st, 2018.