Law No. 2/2010, of March 15, approved several amend-ments to the VAT refund regime, particularly regarding the terms for refund.

The most relevant amendment concerns the reduction of the term for VAT refunds from 90 to 60 days, that will enter into force for refund requests made after July 1, 2010.

It was also approved the VAT monthly refund regime, under which the term for the tax refund will be of 30 days. In order to benefit from this regime, companies must register electronically at the Tax Administration website until the end of November of the previous year to which it will be effective. Taxpayers that choose this regime will be obliged to remain with it for a period of one year.

Please note that after a 30 or 60 days term, according to the case, if the refund still hasn’t been paid, taxpayers may file a petition for payment of compensatory interests.

This same law also increases to EUR 30,000.00 (previously it was EUR 1,000.00) the amount according to which the Tax Administration can demand a guarantee to pay a VAT refund. These measures will be certainly well received by companies due to the increase of their cash-flow and costs saving. 

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