The government announced a series of measures meant to foster economic growth. One of which will be the payment of VAT by sellers when invoices are cashed and not when they are issued, as now, said Prime Minister Victor Ponta.
If will be implemented, the measure could apply only to companies with an annual turnover of less than €500,000 and for invoices paid by bank transfer and not cash.
The initiative is expected to be beneficial for companies with liquidity problems as in the current economic context many complain they have to pay VAT for invoices which are often paid very late. Overall, the measure could help economic growth, say businesspeople, but there are also concerns that in the short term it could reduce budget revenues.
The measure could be introduced next month but it must be agreed with the IMF and the European Commission, add Victor Ponta.
