THE NEW LEGAL REGULATIONS ON VALUE-ADDED TAX IN THE AI ERA
THE NEW LEGAL REGULATIONS ON VALUE-ADDED TAX IN THE AI ERA

Summary/Abstract: The Value Added Tax falls within the category of indirect taxes that are owed to the public budget, namely to the state budget, and is regulated by the provisions of the Fiscal Code, in Title IV entitled Value Added Tax. At this time in Romania, two rates of Value Added Tax are applied, namely a standard rate and a reduced rate. The standard rate is 21% applicable to the tax base for taxable transactions that meet both of the following conditions: 1. it is not subject to the reduced rate, and 2. it is not exempt from tax. The reduced rate is set at 11%. The Value Added Tax Circuit involves the application of these rates progressively at each stage of the goods and services circuit, from production to the final stage of consumption, found in each phase of the goods and services circuit. Being an important source of income for the state budget, the new regulation regarding Value Added Tax intervened by increasing the rates applicable to Value Added Tax and aimed to increase the sources of resources for the state budget.

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