According to Government decision no.768/23.07.2010 (Changes to the methodological norms regarding the Fiscal Code), effective starting with 30 July 2010,VAT rate for price reductions received after 1st July 2010 shall be the same as the one used for the underlying transaction. In case, it is difficult to determine exactly to which operation the discount applies to, using the VAT rate applicable at the time when discount was decided is advised. These updates occured after the standard VAT rate increased from 19% to 24% starting with 1st July 2010.
Events causing a price change are considered to be the following:
partial or total cancelation of operation after invoicing;
partial or total refusal regarding quantities, quality or prices;
written agreements between the parties or final Court decisions;
special discounts granted after a delivery of goods or supply of services;
adjustments due to bankruptcy of the client (only after the Court decision).
Example: A discount of 10% received in August (when VAT rate is 24%) for a specific merchandise bought in June will still be taxed with 19% (the same VAT rate used for buying goods). If the supplier would like to grant a general discount (example: for client good relations) and not particularly connected to one of the goods bought from him, then 24% VAT rate shall be used.
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