Government approves initiative to lower limit for voluntary VAT registration for SMEs

The Cabinet of ministers today approved a proposal by PM Valeriu Guma to lower the limit for voluntary registration as VAT payers for small and mid-sized enterprises from 100,000 lei to 50,000 lei in turnover, Info-Prim Neo reports. The stated reason for adopting the proposal is that the SMEs which don't pay VAT are currently unable to sell their goods to VAT-paying clients. Another reason for lowering the limit is that many SMEs practice double-entry bookkeeping in order to avoid exceeding that cap. The proposal will also be considered in the process of developing the 2011-2013 Medium Term Expenditure Framework before being submitted to Parliament for consideration.