February 8, 2021 | Tax Alert

Share

Tax Alert 02 | VAT regularization on doubtful debts

VAT regularization on doubtful debts

The changes include the extension of the deadline for submitting a request for prior authorization in cases of certification by a certified accountant

Ordinance No. 303/2020, of December 28, comes (finally) to regulate the submission of the request for prior authorization in the procedure for regularizing VAT on doubtful debts, in view of the changes to the regime that had been introduced by Law No. 2/2020, of March 31 (" State Budget Law for 2020”), as well as approving the models and respective instructions to be used for this purpose.

In this context, we highlight the identification by the ordinance of the necessary requirements for considering an accountant certified as an “Independent Certified Accountant” for the purposes of this regime.

We also highlight the implementation of a transitional period, which is applicable to doubtful debts whose requirements are proven and certified by an independent certified accountant and whose deadlines for submitting the request for prior authorization (six months) were between April 1, 2020 and the date of entry into force of the ordinance (December 29, 2020).

Thus, within the scope of the aforementioned transitional period, it is established for those cases the extension of the deadline for submission of the request for prior authorization until February 28, 2021, except in cases where the said period of six months expires at a later date.

We also recall that this ordinance arises in the context of the recent amendment introduced by Law No. 75-B/2020, of December 31st (“State Budget Law for 2021”), which established, with an interpretative nature, that the request for prior authorization for VAT regularization can be made by an independent certified accountant, in situations where the tax do not exceed €10.000 per request for prior authorization (and not by periodic declaration, as was the result of the previous wording of the law).