Danubius International Conferences, 22nd EMAN Conference. Social Responsibility and Sustainability Accounting-Key Corporate Performance Drivers and Measures

The Effects of Amending Legislation on Value Added Tax at Macro and Microeconomic Level in Romania

Ciprian Apostol
Last modified: 2018-04-05


Taxes and fees are, on the one hand, the instrument of budget revenue generation needed to finance public spending, and, on the other hand, an instrument of intervention in economic and social life, because by establishing their level the state intervenes in conducting economic and social activities, influencing the population's consumption capacity.

            Introduced since 1993 as a standard rate of 18%, value added tax has been amended so far. Thus, or standard rate changes have been registered or a number of regulations have been introduced which have led to system for collection or the the value-added tax split system (SPLIT-VAT system). It is one of the most important taxes perceived in Romania and deserves special attention because it has economic and financial implications for all companies, regardless of their type. It occurs both at the level of transactions between companies and at the level of transactions involving individuals. Approaches to value added tax cover different areas of application, different situations specific to each type of activity. Through the multitude of cases, but also through the complexity of the registration system, value added tax has become a point of reference for business activity.

            The objective of the research is to identify the main legislative changes that have occurred with regard to value added tax and to highlight their impact on the formation of budgetary revenues, but also on the activity of companies.

            The research method is the non-participatory observation and the results of the research consist in highlighting the effects of the legislation amendment on value added tax at macro and microeconomic level.