Romania To Apply Reverse Taxation On Cereal Starting June 1

05.26.2011 By Ioana Tudor

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.

Last year, Romania requested derogation from EU regulations to apply reverse taxation on intra-community trade with cereals, fruit, vegetables, meat, sugar and bread. The European Commission rejected the request.

In December 2010, the country told the European Commission it has revised the list of products for which it wants to apply reverse taxation. Romania's new request concerned only cereal and plants for industrial use (corn, wheat, barley, rye, two-row barley, soy, rape, sunflower and sugar beet).

In January 2011, the European Commission's Directorate-General for Taxation and the Customs Union endorsed Romania's new request, which was approved by the Council of the European Union in May.