Romanian tax agency warns firms over personal-use expense deductions

Romania's National Agency for Fiscal Administration (ANAF) has issued a warning to companies and individuals after identifying irregularities in value-added tax (VAT) declarations, Economedia.ro reported. The discrepancies were uncovered through recent digitalisation initiatives aimed at improving the agency's monitoring capabilities.

According to ANAF, a significant number of taxpayers have been recording purchases made for personal use as business expenses and subsequently deducting the related VAT. These transactions include goods and services acquired by companies but intended for the personal benefit of shareholders or associates.

"This practice generates accounting errors, distorts the tax base, and consequently leads to a decrease in declared and paid taxes/fees," ANAF stated.

In response, the agency announced plans to launch a national campaign of notifications, verifications, and potentially broader tax inspections. The effort is aimed at ensuring compliance with fiscal regulations and correcting reported inconsistencies.

The tax authority emphasised that all companies must ensure accurate reporting and refrain from including non-business-related expenses in their tax declarations. Failure to comply may result in financial penalties following audits or inspections.

ANAF noted that its digital systems have significantly improved its capacity to cross-reference taxpayer data and detect inconsistencies.

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