On June 21, 2024, Emergency Ordinance No. 70/2024 was published in the Official Gazette of Romania. This ordinance introduces significant changes regarding the implementation of the RO e-TVA system, which is a prefilled VAT return designed to streamline tax reporting processes.
In Short: the Romanian tax authorities are introducing a system whereby they will pre-fill in a VAT return with data gathered from the company from various other sources. The company would still need to submit its VAT return. In case of discrepancies (i.e. that exceed 20% in percentage terms and LEI 1,000 in absolute value – approx. USD 215) the company will be notified and have 10 days to provide explanations. Failure to provide complete explanations on time could lead not only to fines but also to an increase in tax audits.
The CJEU Judgement on “Luxury Trust Automobil GmbH” (C-247/21) analysis the importance of following strictly invoice requirements in a triangulation supply and more specifically of the “reverse charge” statement on the second invoice in a triangulation.
Unresolved cross-border VAT disputes distort trade flows within the EU and can influence the location decisions of companies. At the same time, they divert the resources of tax administrations away from improving the operation of VAT systems. This is why the EC has been considering launching work to assess the size of the problem and potential solutions.
Michaela Merz 