Tax amendments: changes to the payment of health insur-ance contributions and reduced VAT rate for high-quality food products

31 May 2019 | newsletters

Government Emergency Ordinance No. 31/2019 (GEO 31/2019) was published on 23 May 2019. The main changes introduced by this piece of legislation are presented below.

Deferred payment of the health insurance contribution for 2014 – 2017

  • The deadline for paying the health insurance contribution for the 2014 – 2017 period as per tax decisions communicated from 15 – 23 May 2019 has been postponed. New payment deadlines have been set as follows:  
    • 120 days from the date GEO 31/2019 entered into force (i.e. 21 September 2019);
    • 60 days from the date GEO 31/2019 entered into force (i.e. 23 July 2019). In this case a 10 % reduction of the payable amount applies.
  • New deadlines have also been set for paying the health insurance contribution for the 2014 – 2017 period as per tax decisions communicated after 24 May 2019 as follows:  
    • 120 days from the date the tax decision was received;
    • 60 days from the date the tax decision was received. The 10 % reduction of the payable amount also applies in this case.

Reduced VAT rate for high-quality food products

  • As of 1 June 2019, high-quality food products (produced in mountain areas, eco products, traditional products) authorised by the Ministry of Agriculture and Rural Development will be subject to 5 % VAT, as opposed to the currently applicable 9 % rate.

GEO 31/2019 was published in the Official Gazette of Romania No. 403 of 23 May 2019.

Theodor Artenie

Managing Director Tax

T: +40 21 319 67 90
t.artenie@schoenherr.eu

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Anamaria Tocaci

Tax Manager

T: +40 2 131 96 790
a.tocaci@schoenherr.eu

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Alexandra Barbu

Senior Tax Consultant

T: +40 21 319 67 90
a.barbu@schoenherr.eu

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