European Union: Extension of Romanian Derogation for Small Business VAT Thresholds

On August 11, 2017, the European Commission proposed that Romania be allowed to extend its current derogation on VAT threshold for small business registration until December 31, 2020. Romania currently sets its threshold at EUR 65 000 pursuant to a derogation that expires at the end of 2017. The Commission's proposal would extend this derogation and would at the same time allow Romania to raise its threshold to 88 500, until 2021 or until the provisions of the VAT Directive on special schemes for small enterprises are reviewed and amended. The proposal would only take effect upon issuance of a council implementing decision.