Finally the VAT issue solved through the Emergency Ordinance!
October 1st, 2008
After a series of discussions and negotiations that lasted more than 16 months, the VAT issue relevant for the procurements of the programmes financed by the Global Fund to fight AIDS, Tuberculosis and Malaria is finally getting a solution by issuing an Emergency Ordinance 114 / 2008 by the Romanian Government.
What exactly that this difficulty stood for? During the period preceded the Romanian adherence to the European Union (EU), VAT for the programs with external nonreturnable financing could be recovered by the recipient institutions and organizations at the end of each financial year.
Our country integration in the EU brought the cancelation of this possibility: in accordance with the new Fiscal Code enforced on January 1st 2007, the fiscal procedures of the EU lay down the direction of the payment in full of the VAT to the Government Budget.
In the impossibility to recover these amounts were including the institutions and organizations that carry out activities and projects within the 6th Round of the Global Fund financing.Moreover, the Principal Recipient that coordinates the implementation of the HIV/AIDS and Tuberculosis Grants of this round is a nongovernmental organization, namely the Romanian Angel Appeal Foundation, this enforced as a requirement the elaboration of a legal frame that will allow the Government to co-finance the programs financed under the Global Fund with the VAT value.
For solving this situation, the RAA Foundation closely collaborated with the Ministry of Public Health (MPH), Ministry of Economy and Finance and with a law company, elaborating together a normative act project.
The RAA initiative was sustained by the Country Coordination Mechanism of the Programs Financed by Global Fund.The purpose of this legal initiative was the one to create legal premises that will allow MPH the co-financing of the HIV/AIDS and TB programs with the VAT value relevant for the procurements.
The normative act project will be submitted by the MPH for the Government's approval.During the last days, the adoption of the Emergency Ordinance no 114/29.09.2008 represented the end of this long and laborious process can be also considered a political will act, through which the Government and MPH sustain the efforts of the institutions and organizations active in prevention and control of the two diseases with a special impact over the population's health: HIV/AIDS and Tuberculosis.
Here you can access the content of the Emergency Ordinance.
