Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 18 ISSUE 2
Written by Paula STOICEA, Adina Magdalena IORGA

In Romania, the value of added tax (VAT) is the most important source of revenue for the general consolidated budget (24.4% in 2015 and 23.1% in 2016), but the degree of compliance is around 80% VAT paid on time in relation to the VAT declared in VAT returns submitted by taxable persons registered for VAT purposes. The paper presents the impact of the measure split VAT payment on insolvent agricultural companies, as it has the role of increasing the voluntary compliance rate of companies in insolvency, reducing VAT evasion, ensuring a fair competitive environment by eliminating the advantages of some economic operators with incorrect fiscal behaviour that does not pay VAT to the state budget. The conclusions drawn from the study revealed that the split VAT measure would reduce the chances of recovery for insolvent agricultural companies, contradicts the payment schedule and the prioritization for the distribution to creditors and contravenes the objective for which insolvency proceedings were regulated.

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