The pre-completed RO e-VAT return

The tax authorities have published an emergency ordinance introducing measures for the implementation and use of the pre-completed RO e-VAT return. The main provisions of the ordinance pertaining to the RO e-VAT system are summarised below:

• The pre-completed RO e-VAT return will come into use on 1 August 2024 and will be applicable for operations carried out as of 1 July 2024.
• The pre-completed VAT return will be sent to taxpayers by the tax authorities by electronic means by the 5^th day of the month following the submission deadline for the VAT return.
• In the event that the system is not operational, the deadline for submitting the pre-completed VAT return may be extended.
• After receiving the pre-completed VAT return, taxpayers have the obligation to verify the data and information contained therein and to compare this with the taxable transactions declared in the VAT return for the period in question.
• The tax authorities will compare the VAT return submitted by the taxable person with the one pre-completed using the RO e-TVA system. The comparison is made based on the “VAT” or “Value” column of the VAT return, as applicable.
• Where the tax authorities identify significant discrepancies between the pre-completed amounts and the amounts declared by the taxpayer in the VAT return, a notification of compliance shall be sent to the taxpayer by the 5^th day of the month following the legal deadline for submission of the VAT return.
• The compliance notification will not be taken into consideration when determining the tax risk until 1 January 2025.
• After receiving the compliance notification, taxpayers are required to submit within 20 days an explanatory note justifying any discrepancies identified. This obligation takes effect on 1 January 2025.
• Significant discrepancies are considered those values that cumulatively exceed 20% in percentage terms and an absolute value of RON 5,000, resulting from the comparison of values entered into the rows of the pre-completed VAT return and the VAT return.
• The tax authorities may also issue notifications of compliance in cases where discrepancies that fall below the above-mentioned material threshold are identified on the basis of the risk analysis performed.
• Failure to comply with the submission deadline for the explanatory note is considered a contravention and is punishable with fines ranging between RON 1,000 and RON 10,000, depending on the category of taxpayer. These fines become applicable as of 1 January 2025.
• Failure to provide the required information or a partial provision of information for the purpose of clarifying the discrepancies identified represents an indicator of tax risk related to VAT compliance.
• Moreover, taxpayers are considered to present a risk of wrongful VAT refund in any of the following situations:
• they do not submit a response to the notification of compliance, or
• there are significant discrepancies and no complete and/or conclusive information and data have been submitted to justify them.
• Following implementation of the pre-completed VAT return, the deadline for submitting the recapitulative statement may suffer changes. According to the amendments introduced by the authorities, the deadline for submission of Form 390 will be established by Order of the President of National Agency of Fiscal Administration.
• By way of exception, the deadline for submitting the recapitulative statement for June is 25 July 2024.

Source: Emergency Ordinance no. 87/2024 on the amendment of various normative acts in the field of e-Transport, e-VAT and e-Invoicing, as well as the regulation of various fiscal-budgetary measures, as published on 28 June 2024