One of the abnormalities of the re -election of VAT quotas was notified by a former general manager of Finance, now in the private environment: “I do not understand!”
Mariana Vizoli, photo: Hotnews
The fiscal reform projected to be applied in Romania, which includes Reconfiguring VAT quotashas aroused heated discussions, especially in the agri -food sector but also among the tax experts. One of the detected anomalies is the application of the standard VAT rate to the raw material (eg live animals of domestic species, birds, plants, seeds and ingredients for food preparation), but to the finished product we apply the reduced quota of 11%.
One of the most relevant points of view was expressed by Mariana Vizoli, who worked for almost 20 years in the Ministry of Finance, where he was director, deputy general manager, general director of the General Directorate for Fiscal Code. It attracts the attention of an approach that could generate Significant cash-flow and syncope problems in the production chain.
Challenge of the standard quota to the raw material vs. The reduced quota to the finished product
According to Maria Vizoli's observations, the intention to apply a 21% standard for raw material (like live animals, birds, plants, seeds and ingredients) and o 11% reduced quota for finished product (meat, meat products, canned) is deeply problematic.
This differentiation means that farmers, the initial link of the chain, will sell 21%VAT products. Subsequently, processors (slaughterhouses, sausage factories, canned) will purchase these raw materials with a large share, but will sell finished products with a much lower share.
The direct consequence of this discrepancy is the massive entry in VAT refunds for processors. This situation not only that blocks working capital of companies, but also it makes economic activity difficult and generates o additional administrative pressure for both taxpayers and tax authorities. Mariana Vizoli correctly emphasizes that The most efficient application of a reduced VAT rate is done throughout the production chain, from the raw material to the finished product. This ensures a fluidity of financial flows, reduces bureaucracy and prevents VAT accumulation to be reimbursed.
Why is it essential to apply the reduced quota throughout the chain?
- Avoid Cash-Flow blocks: When the VAT rate is uniform throughout the chain, companies are not forced to wait for reimbursements, and the liquidity remain in the economic circuit.
- Stimulation of investments and production: A stable and predictable fiscal environment encourages investments in agriculture and food industry, contributing to the increase of local production.
- Reducing administrative burden: For both companies and ANAF, the VAT refund process is difficult and resource -consuming. A unique share significantly simplifies tax administration.
- Competitiveness: An effective VAT scheme helps local producers more competitive on both the domestic and external market, by avoiding the hidden costs generated by reimbursements.
Solutions and directions of action
It would be useful for the legislator to re -evaluate the impact of this reconfiguration of VAT quotas. A cautious approach would involve extended consultations with representatives of the agri -food sector and tax experts to find solutions to support, not to brake, economic development.
Applying a reduced VAT rate throughout the Value of Basic Food It would be a much more beneficial and sustainable long -term measure. This would ensure predictability, reduce the administrative burden and contribute to the consolidation of a vital agri -food sector for the Romanian economy, says Vizoli, one of the best Romanian specialists in terms of VAT.
Her full statement: “I do not understand why the raw material will have a standard share of 21% (eg live animals of domestic species, birds, plants, seeds and ingredients for food preparation), and the reduced share of 11% will be applied to the finished product (eg foods obtained from these raw materials: meat, meat products, canned). Sausages, canned, other foods, will enter into VAT refunds.
