Regular verification for high-risk VAT payers

Written by: Bridgewest


The National Agency for Fiscal Administration will check the registration criteria for all taxable individuals who require re-registration for VAT purposes, after they have had their registration cancelled. Also, the agency will regularly assess some categories of taxable individuals who are considered high-risk VAT payers.

Changes to the Tax Code

These changes are included in a draft amendment to the Tax Code aimed at combating tax evasion. According to a statement made by the Ministry of Finance, all taxable individuals who have had their VAT registration cancelled by the relevant authorities and who are now requesting a re-registration for VAT purposes will be subject to a verification performed by the relevant authorities.
According to the current legal provisions, only newly incorporated taxpayers in Romania and those who register for VAT on an optional basis are subject to regular check-ups.

High-risk taxpayers

The Finance Ministry also believes that a mechanism for the periodic evaluation of high-risk taxpayers should be in place. Taxpayers are considered high-risk if they are individuals registered for VAT purposes for exceeding their ceiling limit and these regular check-ups will also take place every time the taxable individual records changes to its registered office in the Trade Register or when the same person records changes regarding the change of associates and/or managers in the company.
By applying these measures, the Ministry of Finance wishes to eliminate the unfair competitive advantages of economic agents who evade the payment of VAT, compared to an honest VAT payer and also improve the overall VAT collection method.
Other changes to the Tax Code concern the reverse charge for electricity traders and the introduction of statutory statements that need to be performed by these taxpayers. The Accountancy Law is likely to suffer some changes regarding the obligations for organizing and conducting the accounting activities by legal persons who perform remunerated activities. 
Our accountants in Bucharest can tell you more about the accounting principles applicable for various categories of taxpayers in Romania.