Significant changes in Romanian tax legislation have come into effect, affecting companies’ ability to deduct VAT for invoices related to employees’ and administrators’ travel expenses.
According to a Government decision, the possibility to deduct VAT for travel invoices issued in the name of employees or administrators has been eliminated. This measure is a result of efforts by authorities to clarify and simplify fiscal rules regarding VAT deductibility.
Until now, it has been common practice for invoices for services related to employee travel to be issued in their names and for the corresponding VAT to be deducted. However, the new rule requires these invoices to be issued directly in the company’s name and transmitted through the electronic invoicing system (e-Invoice).
We recommend reviewing and adjusting internal procedures to ensure correct invoicing and compliance with the new tax requirements.
Our team of professional is available for any clarifications or additional details required in your analysis. The above information represents just a summary of aspects we consider relevant in the recently published legislation. This is not exhaustive disclosure of information and it is not intended to be used as advice on any particular matter. We invite all readers to contact us for further clarification of any specific issue. Argus Audit team and its associates disclaim liability in any action taken by a third party in reliance exclusively on summarized information presented in our publications.