Romanian government postpones hard implementation of new e-VAT regulation

The Romanian Government adopted on Thursday, June 27, an emergency regulation that amends some provisions of the e-VAT regulation adopted on June 21, in the sense that some provisions regarding e-VAT will be postponed until January 1, 2025, Economedia.ro reported.

The new e-VAT regulation aims to increase VAT collection and reduce tax evasion, as Romania currently has the largest VAT gap in the EU.

However, the tight deadlines in the original regulations have sparked intense debate and complaints from professional accounting associations about the excessive work and blockages that a mechanism that has not been sufficiently discussed in advance may cause.

Under the e-VAT mechanism introduced by OUG Regulation 170/2024, enterprises (subject to VAT) are obliged to explain discrepancies between the list of VAT transactions collected by the authorities from secondary sources (mainly from the e-Invoice system) and the VAT transactions declared by the enterprises themselves .

However, during the transitional period, businesses will have longer deadlines to submit a VAT discrepancy notice.

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