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Bellow you will find a small resume from art.134 - Romanian Code Tax who is reffering to

exigilibility for delivering goods and services :

For other operations than those intra UE goods and imports, as a rule general:- The chargeable event = date of delivery of goods or services;- VAT chargeability(exigibility) = The chargeable event

Byexception to general ruleVAT chargeability occurs:- Date of issue of an invoice, before the event;

- On collection of an advance before the event date,By exception to of the above (except in the case of advances) starting with January 1, 2013, willbe applied VAT cashing system.Purpose: helping small and medium companies who have difficulties in paying VAT to the

state budget before cashing ( collecting) the value ( amounts)from the operations with

customers;

Effect:chargeability of tax occurs on receipt ( collections) of full or partial amounts from the

transactions performed:

-collection of VAT depending on the date of receipt ;

-tax deduction based on the date of payment;Eligible taxpayers:those whose turnoverin the previous calendar year shall not exceed

the 2,250,000 lei;

Application:

- Is mandatory for eligible taxpayers (except those that are part of a unique fiscal group);

- It is not optional for taxpayers not eligible.

Eligible taxpayers:

-taxable persons registered for VAT purposes;-taxable persons registered for VAT which are registeredby default in the

register of taxable persons who apply VAT collection system;-taxable persons registered for VAT purposes in the current calendar year;

Taxable persons registered for VAT purposes with his business outside Romania arenot eligible(whether they are establishedin Romania by a permanent office or not).

VAT cashing system will be applied by the eligible taxpayers only for operations thathave their place of taxation in Romania, with the following exceptions:

- operations for which the customer qualifies as the person liable to pay the tax by

reverse charge ( wood);- operations under simplification measures;- exempted from VAT operations;- operations under special arrangements provided for in Art. 1521 - 1523;- operations which payment is received, partly or wholly in cash by the taxpayer

eligible to apply VAT cashing system from beneficiaries businesses, individualsregistered for VAT, people freelancers, self-employed and unincorporatedassociations;

-operations whose beneficiary is an affiliate / supplier (in the purposes of the TaxCode).Taxpayers who receive the equivalent operations in the cash from individualbeneficiaries are eligible to apply system VAT collection.

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If case that eligible taxpayers have not received the entire or partial value of thesupply of goods or services within 90 calendar days from the invoice date, calculatedin accordance with Code of Civil Procedure, the exigibility (chargeability) of taxrelated with unpaid ( uncollected)value occurs:

- In the 90-calendar day from date of invoice;- In the 90-calendar day deadline for issuing the invoice (the invoice has

not been issued within the period specified by law).

By default the right to deduct VAT on purchasesmade by :- a taxable person who applies VAT cashing system

or by- a taxpayer from a taxable person which applies VAT cashing system is

postponed until the tax for goods and services which have been delivered / renderedwas paid to the supplier / provider or, even if a part of operations performed by thetaxpayer are excluded from the VAT collection system.If in the period of 90 days interferes a cashing from the client, the collection vat is

proportional with the cashing amount in total invoice value. As a method ofcalculation it presume that the value of cashing includes VAT invoiced to the clientand then determine the VAT collected by hundreds majorate method 24*100/124

using the applicable percentage of VAT(24%, 9%). The same system applies to thededuction of VAT by the payer.It can be seen that while tax collection has a grace period of up to 90 days, the buyerwill not be able to deduct VAT to the supplier only after paying the bills, regardless ofthe period that will make this payment.The system will effect not only on those who are bound to apply, but also to all otherswho made purchases from entities that apply the VAT cashing system.

Transitory provisions applicable to invoices issuedby taxable person before toentry or exit to / from VAT cashing system:

VAT collection system it applies:- Case of invoices for partial value of the transaction issued before the

entry date in the VAT cashing system;- Case of invoices for total value of the transaction issued before

leaving date from the VAT cashing system;

Not applicableVAT cashing system:- Case of invoices for total value of the transaction issued before

the entry date in the VAT cashing system;- Case of invoices for partial value of the transaction issued before

leaving date from the VAT cashing system;.