Romania anounced an extension of the soft-launch period

Details
Hits: 28

vlag UK

The Romanian Ministry of Finance has announced an extension of the soft-launch period for pre-filled VAT returns by an additional six months. According to the new guidelines, no penalties will be imposed until 1 July 2025.

Beginning 1 August 2024, Romanian taxpayers will be required to validate a new monthly list of their VAT transactions, which will serve as a pre-filled return that must be reconciled with their standard VAT return submitted to the Ministry of Finance and the National Agency for Fiscal Administration (ANAF). This initiative was enacted on 21 June 2024 through emergency ordinance (OUG) 70/2024, following a brief two-day public consultation period.

In August 2024, Romania released draft legislation detailing the format of the new pre-completed VAT returns, referred to as RO eVAT. Taxpayers must review these listings of VAT transactions derived from e-invoicing and SAF-T, addressing any discrepancies, by the 20th of the month after the reporting period.

August 2024: Launch accompanied by a six-month penalty-free soft launch period. Before the official launch date, ANAF has consented to a six-month penalty-free interval, extending from August 2024 to January 1, 2025, for the implementation of its new RO eVAT reporting system. Additionally, taxpayers will be granted 20 days, as opposed to the previously established 5-day limit, to address any discrepancies between their VAT returns and the new eVAT reports.

This list is derived from the newly instituted e-invoice VAT regime, which became fully mandatory on July 1, 2024, along with the Romanian SAF-T for the transactions declared by taxpayers and their respective counter-parties. The process will commence with transactions from July. The listing will be made accessible on the 20th of the month following the transactions and must be validated by the 25th of the same month. The original 5-day deadline has now been transformed into a six-month penalty-free soft launch period.

Sources of data for RO eVAT:

  • RO eVAT data sources
  • Mandatory e-invoicing
  • SAF-T
  • e-transport National System
  • RO e-seal
  • e-cash registers
  • Recapitulative statements (Intrastat; ESL’s)
  • Customs data

Invoices are to be approved through the Virtual Private Space (VPS) platform, which allows for modifications to be made.

Taxpayers are still required to file a standard VAT return for now. Should discrepancies exceeding the greater of 20% of the VAT owed or RON 1,000 (approximately €200) be identified through eVAT, the taxpayer must submit an explanation to ANAF via VPS within 10 days. Neglecting to address these discrepancies may lead to possible fines and an audit.

KGT is a SAP partner for PE services and SAP Build partner, and to become an SAP partner, strict due diligence requirements must be met, including having certified SAP consultants. You can find us at: https://partnerfinder.sap.com/profile/0001925409

SAP add-on via clearance model

Roadmap to Tax and IT function effectiveness

KGT SAP add-ons for SAF-T, e-invoicing and MTD UK for VAT work as a standalone application within the SAP system and do not change existing customer SAP functionality or processes. It is fully configurable with a custom namespace /KGT.

KGT partnered up with SAP regarding 'SAP Advanced Compliance Reporting for SAP HANA'. The 'Advanced Compliance Reporting' (ACR) service enables you to configure, generate, analyze, and electronically submit statutory reports that contain indirect taxes, such as value-added tax.

KGT also provides S/4 HANA transformation support.

Contact us