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Impact of GEO 78 / 2019 on the cancellation of split VAT payment system on special accounts for split VAT payment open with BRD

28 Jan 2020

In attention of companies (“clients”) with VAT split accounts

On February 1, 2020, the provisions of the Emergency Ordinance 78/23 December 2019 regarding the revocation of the VAT split system in Romania (“OUG”) will take effect, with immediate impact on the special VAT split accounts opened by the clients at BRD.
Starting with the date of the publication of the OUG, December 23, 2019, the Bank will no longer open new VAT accounts, and the amounts from the existing VAT accounts will be subject to forced enforcement measures initiated by the clients' creditors, regardless of the debt for which they were established.

After February 1st, 2020, when the legal context applicable to the VAT split in Romania will cease to be applicable, the existing VAT accounts can only be used to debit their balance (not their credit) for the purpose of transferring the available in the current accounts that Clients hold at BRD or any other credit institution.
Given the special purpose of these VAT accounts and the provisions of the OUG, the reglementation of the situation of special VAT accounts opened on behalf of the Clients at BRD can be done as follows:

Until February 1, 2020:
Transfers of the amounts available from the VAT accounts opened by the Clients to the BRD to other VAT accounts (opened at the Treasury or another credit institution) may be done - they can be ordered both electronically (excepting garnished accounts) and in BRD units, these operations being performed within the limits and in compliance with the legal regime regarding the VAT split; After the transfer, the client will analyze the opportunity of maintaining the VAT accounts opened at BRD in the context of revocation of the applicable legal regime.
At the same time, we kindly ask the clients to return any CEC forms / payment orders issued on the VAT accounts and which are not yet put on the settlement circuit.
Debit instruments related to VAT accounts will be received for remittance on the settlement circuit until the maximum date of January 29, 2020, at 14.00. The maturity of the promissory notes/ promissory notes cannot exceed 30th of January 2020.

Between 01-15 February 2020:
On February 1st , 2020, BRD will block the credit of VAT special accounts, and will limit the debit of the VAT account to the transfer operation of the ballance to current accounts of the clients; therefore, if the above steps have not been taken, at any BRD units, clients will be able to transfer the available amounts from the VAT accounts to BRD to current accounts opened on behalf of clients to BRD.
Debit instruments received for payment on VAT accounts will be refused for for unerported to CIP reasons (code 20, other reasons - cf OUG); In this regard, we recommend the payment of the amounts related to the debit instruments from the current account, after the transfer of the balance from the VAT account to the current account.

After February 15, 2020:
For the VAT accounts that remain open on behalf of the Clients at BRD, the bank will order the transfer of the amounts from the VAT accounts to the current accounts of the clients, and the VAT accounts will be closed automatically, without additional formalities.

For further information, please contact your relationship manager.

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