Exclusions from Automatic Tax Declaration for Participants in Cash VAT System
In a recent development, the government has outlined the criteria for taxpayers seeking to avail the automatic periodic declaration of Value Added Tax (VAT) in the national territory. As per a decree published this Thursday in the Republic Diary, eligible taxpayers must be residents in the country and not registered in the VAT cash regime.
This measure forms part of the Tax Simplification Agenda, with the decree providing guidance on the taxpayers covered by the stipulation, set to be defined in a subsequent decree. The criteria-defining decree became effective starting July 1st, applying to both active and passive operations.
Notably, taxpayers must have classified all invoices and corrected documents in which they appear as acquirers to be considered for the automatic periodic declaration. However, the declaration explicitly excludes taxpayers involved in import or export activities, those acquiring goods or services from the same tax subject, and those operating under special or particular VAT regimes.
Furthermore, invoices and corrected documents that have not been previously communicated by the issuer and were registered manually by the acquirer on the e-fatura portal will not be considered for the automatic periodic declaration. This exclusion applies for the purpose of deducting the respective VAT.
While the specific criteria for eligibility of taxpayers are yet to be explicitly detailed, general guidance suggests that residents in the national territory, not registered in specific VAT schemes, and meeting other eligibility criteria as defined by the tax authority may qualify for the automatic periodic declarations. For the most accurate and detailed information, it is advisable to consult the specific Decree-Law and relevant tax authority publications.
- This automatic periodic VAT declaration, part of the Tax Simplification Agenda, may be available to residents in the national territory who are not registered in specific VAT schemes and are engaged in finance and business activities, as long as they meet other eligibility criteria defined by the tax authority.
- In relation to the Tax Simplification Agenda, those finance and business entities, residents in the national territory and not registered in particular VAT regimes, might become eligible for the automatic periodic VAT declaration, subject to additional eligibility criteria as determined by the tax authority.
