Romania Halts Automated e-VAT Compliance Notices: A Legislative Recalibration

In a significant legislative shift, Romania has suspended the enforcement of its RO e‑TVA automated VAT compliance system by repealing key provisions in Government Emergency Ordinance (OUG) 70/2024.

This amendment effectively halts automated compliance notices that were based solely on discrepancies found in pre-filled VAT returns. The move marks a moment of introspection for the Romanian tax authorities (ANAF) concerning the balance between automation and traditional auditing methods.

Background: The Rise of RO e‑TVA

Romania’s RO e‑TVA was introduced as a progressive compliance tool designed to leverage data analytics. By drawing upon pre-filled VAT returns and automated risk indicators, ANAF aimed to issue compliance notices when discrepancies appeared between reported VAT and transactional data such as e-invoicing and SAF-T reporting. However, since mid-2024, businesses began to express growing concerns about the system.

These included:

• Premature compliance notices that caught businesses off guard.
• Limited transparency** regarding how discrepancies were calculated.
• Overlapping obligations** leading to an increased administrative burden.
• A lack of procedural safeguards**, raising fears of arbitrary penalties.

These widespread criticisms catalyzed the recent legislative correction.

Legal Changes: Repeal of Key Provisions

With Government Emergency Ordinance no. 13/2026, Romania has effectively amended OUG 70/2024, focusing on the abrogation of three core articles:

• Article 5, Article 8, and Article 16—the foundation for automated compliance mechanisms under the RO e‑TVA framework—have been repealed.

Impact on e-VAT Compliance Notices

Because of these changes, the automatic issuance of e‑VAT compliance notices has been suspended. Specifically:

• The system will no longer generate compliance notices triggered solely by discrepancies in pre-filled VAT returns.
• Sanction pathways directly linked to RO e‑TVA mismatches have been halted.

This decision indicates a temporary retreat from an enforcement-first strategy, acknowledging that the system requires further maturation before it can be effectively utilized for regulatory compliance.

 Pre-Filled RO e‑TVA Returns: Informational Only

Despite the changes, the pre-filled RO e‑TVA returns remain in place. However, their role has shifted:

• These returns will no longer trigger mandatory corrective actions.
• They cannot serve as a basis for penalties or sanctions independently.

Instead, they will function as informational tools, aiding businesses in comparing their VAT returns with the RO e‑TVA draft without the risk of automatic enforcement from ANAF.

A Shift Toward Traditional Audit Procedures

The amendment underscores a crucial principle of proportionality. While data-collection systems such as e‑Factura and SAF-T remain operational, VAT enforcement will require the traditional audit process rather than relying solely on algorithmic outputs for decision-making. This response directly addresses business complaints regarding the lack of human review and contextual analysis in the issuance of compliance notices.

What Remains Unchanged

It's essential to clarify what aspects of the VAT framework remain unaffected by these amendments:

• SAF-T reporting obligations persist in full force.
• RO e‑Factura (for both B2B and B2G transactions) continues as per existing regulations.
• VAT returns (D300) must still be filed according to statutory deadlines.
• ANAF’s audit powers remain intact.

In essence, the RO e‑TVA is not dismantled but paused as an enforcement mechanism.

Practical Implications for Businesses

This legislative rollback presents both immediate relief and medium-term uncertainty for Romanian businesses:

• Short-Term Relief: The suspension of automated compliance notices will reduce compliance pressure, resulting in fewer clarification requests and a lower risk of penalties linked to system mismatches.
• Medium-Term Uncertainty: While the RO e‑TVA is not abandoned, the repeal indicates a redesign phase. Businesses should expect new safeguards, thresholds, and procedural rules before the system reactivation.

In this context, companies should view this as an opportunity to enhance data consistency rather than a reason to deprioritize VAT data governance.

Strategic Takeaways

From a business perspective, Romania's actions underscore:

• The acknowledgment that e‑VAT enforcement mechanisms must evolve to ensure legal certainty and procedural safeguards.
• The anticipated return of RO e‑TVA in a revised form in line with broader EU VAT Digitalization (ViDA) principles.
• Importance of data integrity across e‑Factura, SAF-T, and VAT returns to avoid issues when the system is reactivated.

Conclusion

Romania's decision to roll back key provisions of the RO e‑TVA compliance notice framework signifies a pivotal recalibration in the EU’s VAT digitalization efforts. Instead of hastily accelerating enforcement, Romanian legislators have opted to stabilize the existing system and address pressing business concerns.

This reassessment resonates with a broader EU trend toward ensuring accuracy, transparency, and proportionality within digital VAT frameworks before implementing rigorous enforcement measures. As such, companies operating in Romania should remain vigilant, leveraging this opportunity to fortify their compliance strategies ahead of potential system reactivation.