1. What does the RO e-VAT system involve?

• The RO e-TVA system is set to become operational from August 1, 2024, and will apply for all taxable transactions conducted since July 1, 2024, onwards.
• RO e-TVA system will provide a prefilled VAT return containing data related to the economic transactions declared by taxpayer and transmitted to the Ministry of Finance and National Agency for Fiscal Administration (“NAFA”) via RO e-transport system, RO e-invoicing system, RO e-SAF-T etc.
• The President of the National Agency for Fiscal Administration will approve the model and content of the prefilled VAT return within 10 days of the entry into force of the current Emergency Ordinance No. 70/2024.

2. How would RO e-VAT system work?

• The pre-filled VAT return will be generated for each reporting period, up to and including the 20th day of the following month after the end of the fiscal period.
• The VAT return will be accessible through the Virtual Private Space (“VPS”).
• Taxable persons registered for VAT purposes have the following obligations:

• to check, modify, and complete the information in the VAT return according to the actual fiscal situation.
• to sign and submit the VAT return in accordance with the deadline imposed by the current tax legislation.

3. Romanian tax authorities will perform checks between the data included in the prefilled VAT return and actual data submitted

• NAFA will perform regular checks between the data included in the pre-filled VAT return and actual VAT return submitted by the taxpayer.
• If significant discrepancies (i.e. that exceed 20% in percentage terms and 1,000 lei in absolute value) are identified between the pre-filled VAT return and the VAT return submitted, the taxpayer will be notified by NAFA with respect to the discrepancies identified via VPS.
• Please note that NAFA may also notify discrepancies below the aforementioned threshold based on the taxpayer’s fiscal risk status. The criteria for issuing such notifications are determined through ANAF’s risk assessment procedures, which consider factors such as previous compliance history and the nature of the discrepancies.
• NAFA will communicate the significant discrepancies identified to the taxable person by the 5th of the month following the VAT return submission deadline. For example, if the VAT return submission deadline is the end of July, NAFA will notify the taxable person of any significant discrepancies by August 5th.

4. Obligation at the level of the taxpayer (grace period to apply up until 19 September 2024)

• Taxpayers are required to submit an explanatory note for significant discrepancies identified by NAFA within 10 days of receiving the notification via VSP.
• Failure to submit the explanatory note within the deadline (i.e. 10 days) will trigger to potential fines ranging from LEI 2’000 lei to LEI 10’000. In addition, the non-compliance with this obligation could lead to an increase of the taxpayer’s fiscal risk status.
• Also, the taxpayers that do not submit the explanatory note on time, or providing incomplete information, could lead to improper VAT refunds and may be selected for tax inspection or anti-fraud tax audit.

More updates on this topic once the model and content of the prefilled VAT return will be published.

For further details please contact

Andreea Dereli
andreea.d.dereli@pwc.ch