What is Automatic VAT registration?

VAT registration is usually a voluntary or compulsory process when certain thresholds or conditions are met (e.g. exceeding the 300,000 lei threshold). However, in certain situations, ANAF may decide to register a taxpayer ex officio – without the taxpayer’s request. This procedure is applied, for example, when the taxpayer has behaviours that indicate that registration is mandatory, but refuses or intentionally avoids this step.

What is new in ANAF Order 7032/2024?

The key change introduced concerns the basis on which ANAF can register ex officio:

‘The decision on the ex officio registration for VAT purposes shall be drawn up on the basis of the administrative-fiscal acts which have become final by non-exercise of appeals or by a final court judgement.’

In brief:

• ANAF can no longer automatically register for VAT purposes on the basis of suspicions or preliminary findings.
• There must be final tax rulings: either they have not been challenged, or the court has definitively ruled on them.
• The taxpayer’s rights must be respected, as they now have a clearer framework within which to formulate their defence or appeal before the ANAF intervenes ex officio

ANAF notification – The taxpayer’s right to be heard

An essential element introduced and clarified by Order 7032/2024 is the step of notifying the taxpayer before issuing the ex officio VAT registration decision. This step is part of respecting the principle of the right of defence.

In concrete terms :

• ANAF has the obligation to send a notification to the taxpayer, in which:
  • the intention to register for VAT ex officio is clearly mentioned;
  • the reasons that have led to this conclusion (as a rule, final administrative-fiscal acts) are explained;
  • the opportunity to be heard or to send their point of view is given.
• If the taxpayer fails to appear at the hearing, ANAF will send an additional invitation, expressly named in the order:
  • ‘Invitation to exercise the right to be heard’.
• The purpose of this invitation is to give the taxpayer a last chance to present evidence or arguments in his or her defence before the tax vector is amended ex officio.

Practical advice

If you receive a tax-administrative act with VAT implications, analyse it carefully and, if necessary, contact a tax adviser to contest it within the legal deadline. Avoiding action may lead to automatic VAT registration, which comes with significant accounting and financial implications.

What does this mean for entrepreneurs?

• More transparency in ANAF’s decision to register ex officio;
• Opportunity to challenge tax acts before the tax vector is changed;
• Reduce abuses or arbitrary interpretations by tax inspectors.

Conclusion

ANAF Order No 7032/2024 introduces an essential principle: ex officio registration for VAT purposes can no longer be made on the basis of final tax decisions. This is an important step towards a more predictable and balanced relationship between taxpayers and the tax administration.

For more news you can also read this article.