Recalls DL 34/2025 and DL 35/2025 introduced changes to Cash Accounting Regime for Value Added Tax purposes (Cash VAT Regime).
The instructions aim to clarify scope of changes, for correct application to taxpayers.
DL 34/2025 provides, by amending art 1 of Cash VAT Regime, that taxable persons not achieving in previous calendar year, re VAT, turnover of €+2mn may opt for it.
Scope of application of regime extended as, until now, threshold was €500,000.
Art 5,1a) of Cash VAT Regime is amended in the same sense, establishing that taxable persons covered by regime must communicate, electronically on Tax Portal, when they reach, in current calendar year, turnover higher than that sum.
Art 3 DL 34/2025 determines these changes will take effect from Jul. 1, 2025, so that, from that date, taxable persons covered by Cash VAT Regime who reach a turnover of €2,000,000 are obliged to make communication referred to in art 5.1a.
Taxpayers covered by general VAT collection regime may, provided other conditions met, opt to apply Cash VAT Regime, via option made electronically on Tax Portal in Oct. each year, that will take effect in Jan. of following, per terms of art 4 Cash VAT Regime.
Further details are provided regarding DL 35/2025 and other related matters.
Clarifications provided by Circular Letters 30150/2013 and 30154/2013 remain in force, except for the changes introduced in the meantime.
On Feb. 26, POR GVT issued law to amend DL 71/2013 on cited topic.
POR GVT published Law 18/2025 authorizing it to amend cash VAT regime threshold.
Overview
PRL authorized amendment of VAT cash accounting regime in annex to DL 71/2013.
Authorization granted with purpose and scope of amending arts 1 and 5 of cited DL.
To increase turnover threshold from €500,000 to €2,000,000 for VAT, for access to cash VAT regime by VAT taxable persons who meet the other legal conditions.
Effectiveness
Authorization granted for 180 days, unclear from when as no express in force date.
Increases turnover threshold for access to cash VAT regime as GVT believes conditions are met to extend scope, now covers VAT taxpayers with annual turnover under €2mn.
This provides VAT taxpayers who meet other conditions for accessing scheme with the possibility of exercising this option, opening scheme to significant number of economic agents involved in business/professional sectors, improves their financial management.
The DL 34/2025 will come into effect on Jul. 1, 2025.
Recalls DL 34/2025 and DL 35/2025 introduced changes to Cash Accounting Regime for Value Added Tax purposes (Cash VAT Regime).
The instructions aim to clarify scope of changes, for correct application to taxpayers.
DL 34/2025 provides, by amending art 1 of Cash VAT Regime, that taxable persons not achieving in previous calendar year, re VAT, turnover of €+2mn may opt for it.
Scope of application of regime extended as, until now, threshold was €500,000.
Art 5,1a) of Cash VAT Regime is amended in the same sense, establishing that taxable persons covered by regime must communicate, electronically on Tax Portal, when they reach, in current calendar year, turnover higher than that sum.
Art 3 DL 34/2025 determines these changes will take effect from Jul. 1, 2025, so that, from that date, taxable persons covered by Cash VAT Regime who reach a turnover of €2,000,000 are obliged to make communication referred to in art 5.1a.
Taxpayers covered by general VAT collection regime may, provided other conditions met, opt to apply Cash VAT Regime, via option made electronically on Tax Portal in Oct. each year, that will take effect in Jan. of following, per terms of art 4 Cash VAT Regime.
Further details are provided regarding DL 35/2025 and other related matters.
Clarifications provided by Circular Letters 30150/2013 and 30154/2013 remain in force, except for the changes introduced in the meantime.
Regulators
POR GVT; POR Tax
Entity Types
Auditor; Corp
Reference
Cir Lt 25061/2025, PR, 3/25/2025; OG 58/2025, DL 34/2025, 3/24/2025; OG 40/2025, Law 18/2025, 2/26/2025; DL 71/2013; Citation: Law 18/2025; Decree Law 34/2025;
