On 27 June, Law no. 12/2022 was published approving the State Budget for 2022.
In the area of VAT, new deadlines have been approved regarding the submission of periodic declarations and the payment of tax, as well as new rates, which will apply from 1 July.
New deadlines
The deadline for submission of periodic VAT returns is extended to day 20 of the second month following the month or quarter to which the operations refer, depending on whether the taxable person falls under the normal monthly or quarterly regime.
The deadline for payment of the amount of tax due is extended to day 25 of the second month following the month or quarter to which the operations refer, depending on whether the taxable person falls under the normal monthly or quarterly regime.
With the change now approved, individuals or companies that unduly mention VAT on an invoice will now have to pay the respective tax within 20 days from the date on which the invoice was issued.
However, the deadline for the payment of the tax for a single taxable transaction (isolated acts), which must be made until the end of the month following the conclusion of the operation, is maintained.
As these are procedural changes, they are immediately applicable.
New Fees
Items 1.13, 2.36 and 2.37 are added to List I (reduced rate - 6%) annexed to the VAT Code, with the following reduction:
1.13 - Cheese-like products, not containing milk or milk products, produced from nuts, cereals, cereal preparations, fruit, vegetables or horticultural products.
2.36 - Repair services of domestic appliances (includes domestic appliances used in dwellings).
2.37 - Supply and installation of solar thermal and photovoltaic panels (note: the expression "supply" means transmission of goods).
These new rates come into force on 1 July 2022.
Regarding the application of rates, it is recalled that under Article 7(1) of the VAT Code, the tax is due and payable:
a) In the case of transfer of goods, at the moment when the goods are made available to the purchaser;
b) In the provision of services, at the time they are provided;
c) on imports, at the time determined by the provisions applicable to customs duties, whether or not these duties or other Community charges established under a common policy are payable.
Notwithstanding the above, Article 8(1) of the VAT Code states, and without prejudice to the provisions of Article 2 of the cash value added tax scheme, that whenever the transfer of goods or the provision of services gives rise to the obligation to issue an invoice under Article 19, the tax becomes chargeable:
a) If the deadline for issuing the invoice is met, at the time of issue;
(b) if the time limit for issue is not respected, at the time it expires;
c) If the transfer of goods or the provision of services gives rise to payment, even if partial, prior to the issue of the invoice, at the moment of receipt of such payment, for the amount received, without prejudice to the tax in the previous sub-paragraph.
Finally, it should also be mentioned that an amendment has been made to paragraph f) of item 2.5 of Schedule I attached to the VAT Code, so that menstrual hygiene products will now be covered by a specific rule for this purpose, making it unnecessary to include them in the remaining items of the said item.
