VAT repayment finally cleared up

The companies that have VAT to recover from the Finance Ministry have finally learned what is in store for them. The Ministry has completed the new VAT repayment procedure, based on a complicated assessment of the fiscal risk every taxpayer poses. Theoretically, all those that have had a good relationship with the Exchequer will no longer experience the repayment delay problem. Practically, that remains to be seen. The companies regarded as low-risk will be automatically reimbursed, while those regarded as moderate and high-risk will see their VAT repaid only based on an analysis of additional information and/or a control performed at the applicant’s headquarters. The new procedure will enforce as of the VAT repayments due for January, 2004. The regulation stipulates the public finance administrations shall set a so-called negative individual standard (NIS or SIN for short in Romanian), for every company, which shows the maximum amount of VAT that may be repaid without prior control. ZF