With the entry into force of the E-VAT system, companies in Romania will have to comply with new tax compliance requirements. Find out what E-VAT means, who is affected and how this system works.

1. What does E-VAT mean?

E-VAT is an electronic system introduced by GEO 70/2024, published on June 21, 2024, and subsequently amended by GEO 87/2024 on June 28, 2024.

The system allows for automated checks by tax authorities to identify potential errors or inconsistencies between tax returns and data available in electronic systems.
The main purpose of the system is to:

• Increasing tax compliance
• Reducing tax fraud and errors

2. Who does the E-VAT system affect?

Starting January 1, 2025, all companies registered for VAT purposes will be required to comply with the requirements of this new system.

Exception:

• Companies that apply the VAT system upon receipt will have to comply with this obligation starting August 1, 2025.

3. How does the E-VAT system work?

The system is based on a pre-filled VAT return, automatically generated by the tax authorities. The data required for this return is taken from several electronic sources, including:

• RO e-Invoice
• RO e-SAF-T
• RO e-Electronic cash registers
• RO e-Transport
• RO e-Seal
• Customs computer system
• Other Ministry of Finance systems

Operation process:

1. The pre-filled VAT return is transmitted electronically by the tax authorities by the 5th of the month following the VAT return submission deadline.
2. The taxpayer must compare this return with his own VAT return.
3. If there are differences of at least:
   o 20% percentage rate
   o and an absolute value of at least 5,000 lei,
   the authorities issue a RO e-TVA Compliance Notice.

Taxpayer obligations:

The taxpayer must respond to the notification within 20 days of receiving it, providing explanations or correcting the differences.

Sanctions for non-compliance

Failure to meet the response deadline or sending an incomplete response may result in the following sanctions:

• 5,000 – 10,000 lei for large taxpayers
• 500 – 5,000 lei for medium-sized taxpayers
• 1,000 – 2,500 lei for other legal entities and individuals

4. Conclusion

Thorough preparation for the implementation of the new e-VAT system is essential to ensure tax compliance and avoid operational bottlenecks. In a context where the digitalization of tax processes is becoming mandatory, rapid adaptation to e-VAT requirements means not only complying with the new rules imposed by ANAF, but also optimizing workflows and increasing financial transparency. A proactive approach – by updating IT systems, training staff and reviewing internal procedures – will transform this change into an opportunity to modernize the entire accounting and tax activity.

For more information or support in implementing this system, our team of accounting experts is here to help!

You can also read about new systems in this category in this article.