According to minister of finance Sebastian Vladescu, the emergency ordinance aims at tightening control on inbound shipments of goods with high risk of evasion which involves “the switch to specific color” and the payment of VAT and other customs duties at predetermined points”.

The Government has also introduced reverse taxation of VAT for goods such as grains, cereals, vegetables, fruits, flowers, meat and sugar, and “intra-community operator registry”, in an attempt to combat VAT fraud schemes.

Duty-free shops will pay VAT, excises and customs duties in advance.

As for bonded warehouses, production bonded warehouses will remain and while the storage warehouses will be eliminated except those held by tobacco companies and refineries.

To combat tax evasion through assignors and insolvency, the Government has introduced the liability of requesting the permit from the Fiscal Authority for assignments and a joint liability of the administrator in the event of insolvency.