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Recently registered, the proposal is motivated by the hope that, thus having a lower expenditure on waste, Romanians will be more open to recycling and selective collection activities, in the context in which our country is very poor at the moment in terms of waste management, compared to the European average.
The legislative proposal to complete art. 291 par. (2) of Law no. 227/2015 on the Tax Code was recently registered in the Senate and if it becomes law, it should take effect on January 1, 2021 (i.e. be adopted and enacted) in the coming months.
The amendment to the Code that he proposes is one – filling another situation of applying VAT of 9%, this time for the public sanitation service of the localities.
A large number of parliamentarians support the proposal and this is the reason why they sign this initiative: Romania remains deficient in terms of waste management obligations, with a recycling rate of 11%, compared to the European average of 50 %; In a context in which the European regulations on recycling and separate collection are constantly updated, Romania is making progress with great difficulty; By reducing the VAT rate applicable to local sanitation services, the initiators hope that Romanians will change their behavior towards recycling and separate collection; Households will pay less for house maintenance costs, a measure that will especially benefit families belonging to socially vulnerable groups.
Two types of VAT in Romania
In Romania there are currently two types of VAT rates: the general rate of value added tax and two reduced rates: the general rate is 19% and the special rates are 9% and 5%. More details on its application regimen can be found in this material.
Watch out! The legislative proposal is only at the beginning of its journey through Parliament. It must be adopted with a decisive vote in the Chamber of Deputies, after being approved by the Senate, and then it must be promulgated by decree of the state president. Theoretically, it should apply from next year, writes avocatnet.ro.
