The Emergency Ordinance no. 111/2013 changed the cash vat system with effect from January 1, 2014. The main changes are as follows:

• the system is no longer compulsory but rather optional for individuals whose annual turnover in the previous year did not exceed 2,250,000 Lei;
• the option once exercised must be compulsorily maintained until the end of the fiscal year; the only exception is if the 2,250,000 lei ceiling is exceeded during the year;
• the important novelty concerns the collectability of “suspended” VAT: compared to the previous regulatory framework, which provided for the exhibigibility/deductibility of VAT not yet collected/paid compulsorily at the end of 90 days from the issuance of the invoice, now it is the rule provides for the collectability/deductibility of the tax only upon collection or payment of the invoice.

A transitional regime is also provided for taxpayers who were forced in 2013, to adopt the cash system: in particular if in 2013, the limit of 2,250,000 lei was not exceeded, taxpayers will be able to exit the cash system by filing a special notification to ANAF and from the 1st day of the next tax period they will be able to apply the normal regime.