Romania Launches e-TVA System with Penalty-Free Soft Launch Until January 2025
Starting 1 August 2024, Romania has introduced the e-TVA system, a new digital initiative aimed at improving VAT compliance and reducing tax evasion. The system automatically generates a pre-filled VAT statement for all VAT-registered businesses, based on their transaction data from various reporting obligations. This e-TVA statement must be reconciled with the taxpayer’s regular VAT return, with any discrepancies requiring explanation.
Key Features of the e-TVA System
- Sources of Data: Romania’s e-TVA statement consolidates information from multiple systems managed by the Ministry of Finance and the National Agency for Fiscal Administration (ANAF), including the RO e-Invoice, e-Sigil, e-Transport, SAF-T, electronic cash registers, and customs data. The statement covers transactions from July 2024 onwards and is available in the Virtual Private Space (SPV) by the 5th day of the month following the reporting period. For instance, the e-TVA statement for July 2024 will be available by 5th September 2024.
- Review and Reconciliation: Taxpayers are required to review the Romania e-TVA statement against their records. Any significant discrepancies—defined as exceeding both 20% in percentage and RON 5,000 in absolute value per reporting box—must be addressed. If discrepancies are found, ANAF will notify the taxpayer electronically via the SPV, requesting an explanation. The taxpayer then has 20 days to submit a “Justifying Note” to explain the differences. Failure to do so may trigger a tax inspection or anti-fraud control based on the taxpayer’s risk profile.
- Penalty-Free Period: To facilitate the transition to this new system, ANAF has implemented a penalty-free soft launch period. This period extends from 1 August 2024 to 1 January 2025, during which taxpayers will have an extended 20-day window to resolve discrepancies without facing penalties. Compliance notifications will not impact fiscal risk indicators until after January 2025.
The e-TVA system represents a significant step towards the digitalization of Romania’s tax administration, aiming to enhance efficiency and transparency. However, it also introduces new compliance requirements and data accuracy challenges for businesses operating in Romania.
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