Amendment of the exceptional and temporary tax compliance regime in the context of the COVID-19 pandemic.

Legal Alert no. 142

In the context of the COVID-19 pandemic, a series of extraordinary and urgent measures have been approved by the Government in various matters, such as tax matter.
On December 15, 2020, the Decree of the President of the Republic no. 103-A/2020 was published, through which the exceptional and temporary regime of compliance with tax obligations in the context of the pandemic caused by the COVID - 19 virus was changed, in order to ensure liquidity for companies and preserve their activities.
In this regard, the Decree no. 103-A/2020, of December 16, 2020, creates a complementary regime for deferral of tax obligations relating to the first half of 2021, enabling the payment of value tax added (VAT), in three or six monthly payments, since there is a drop in invoicing of at least 25%.
The Decree Law no. 103-A/2020 provides the following:

- Taxable persons subject to the monthly regime, as well as, subject to the quarterly VAT regime that:
• Have obtained a turnover of up to € 2,000,000.00 in the year 2019 or;
• Have started or restarted the activity as of January 1, 2020, inclusive.
- In the first quarter of 2021, they can fulfil their tax obligation, by paying VAT in the following conditions:
• Until the end of the voluntary payment period; or
• In three or six monthly payments, with a value equal to or greater than € 25, 00, without interest.
However, and in order to benefit from the regime, taxpayers should also, cumulatively, declare and demonstrate a decrease in the invoicing communicated through the e-invoice of at least 25% in the monthly average of the full 2020 calendar year compared to the period of the previous year.
This demonstration should be carried out by certified accountant.

Nevertheless, when the communication of the invoice elements through the e-invoice does not reflect the totality of the operations carried out subject to VAT, even if exempt, related to the transmission of goods and services related to the
periods under analysis, the measurement of the breach of invoicing must be
carried out with reference to turnover. This demonstration should be carried
out also by certified accountant.

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