reverse taxation

The Romanian Government on Tuesday approved a draft emergency ordinance whereby the country will apply reverse taxation on cereal and plants with industrial use for about two years staring June 1, 2011, after it received approval from the European Union.

Romania will apply reverse taxation on cereal and plants with industrial use for about two years starting June 1, according to a draft emergency ordinance drawn up by the Finance Ministry.

Romania’s Agriculture Minister Valeriu Tabara says he is working to get the European Commission to accept reverse taxation on food products, which it rejected earlier this year.

The European Commission has rejected reverse taxation in the food sector, which entails that transaction taxes will be paid by beneficiaries and not by entities that delivered the merchandise, said Thursday Aurel Popescu, head of Romania’s bread industry association Rompan.