Romania introduces prefilled VAT returns

Summary: The Romanian Tax Authorities (RTA) have published legislation that introduces prefilled VAT returns. The RO e-VAT system will collect information from different sources and prepopulate a VAT return which will then be sent to VAT registered taxable persons. The taxable person will have to check the return received from the tax authorities and compare the figures to their own records. Any significant discrepancy (a deviation by a minimum of 20% but no less than RON 1,000) between the two will need to be reported and explained to the tax authorities in separate notes to the VAT return.

The system will go live on 1 August 2024.

In more detail

The RTA will collect information from:

• The e-invoicing system which requires electronic invoices to be sent to the RTA;
• The SAF-T statement where more detailed information concerning most transactions undertaken have to be reported;
• The e-cash registers where all cash registers report their information;
• The e-transport system which requires information concerning transported goods to be provided to the RTA;
• Customs information system;
• e-seal;
• other information systems of the Ministry of Finance.

The prefilled VAT return provided by the RTA does NOT replace the VAT return. Taxable persons that are VAT registered will still need to submit the VAT return under the usual process. The prefilled VAT return is mostly a tool the tax office will use to show what information they have on record and then check any discrepancies.

The prefilled VAT return will be made available 5 days before the VAT return deadline (i.e. the 20th of the month following the end of the reporting period) and the expectation is the tax payer will reconcile the data with their own records. No later than the 5th of the month following the VAT return deadline the RTA should contact any taxpayers where it believes there are material differences between the prefilled return and the VAT return that was actually submitted. If such a notification is received the tax payer will have 10 days to provide information on the differences.

For example, the VAT return for the month of August 2024 has to be filled no later than the 25th of September 2024 (monthly reporting is the default reporting period). On the 20th of September the tax payer should receive the prefilled VAT return and will have 5 days to reconcile the differences. By the 5th of October the RTA should revert with any questions should they believe there are material discrepancies that cannot be explained between the two. The tax payer will then have 10 days to reply, therefore if the notification is received on the last day of the deadline, a reply should be provided by

A material difference is considered a difference of at least 20% but not less than RON 1,000.

A fine between RON 2,000 – RON 10,000 will be assessed for non-compliance with the requirement to file explanatory notes, which will also be considered a criminal offence.

The system will go live on 1 August 2024 and apply for transactions starting 1 July 2024. It is expected no fines will be levied until 1 January 2025 as the system will still be undergoing changes and being calibrated.

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