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Compensation of liabilities through the credit balance and VAT excess credit in the Law on remission of liabilities

Taxpayers who have a VAT excess credit or an excess credit of another tax liability, shall benefit from the remission of the tax liabilities pursuant to the Law No. 33/2017 “On the payment and deletion/remission of tax liabilities, customs duties, and the removal from circulation of the transport vehicles after the deletion/remission of the tax liabilities”:

  • Upon compensation (deduction) of the excess equal to the outstanding amount of taxation, excluding fines and late payment interests not entered into the system, that belong to tax periods until 31/12/2010.
  • In case that the excess credit cannot cover the whole amount of the outstanding taxation, then the remaining part shall be paid, and afterwards the administrative penalties and late payment interests shall be deleted.
  • The rule on compensation shall be automatically implemented, without any control, apart from the cases when taxpayers are under administrative appeal or court process. This provision is implemented when the taxpayer resigns from the administrative appeal or from the right to lodge a claim/appeal/recourse at any stage and phase of the trial at the competent court.
  • The compensation of VAT excess credit and any other type of taxation must be firstly used to match the liabilities within the taxation itself and then transfer to other taxes.
  • The social security and health care insurances liabilities shall not be subject to this compensation.

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