Romania’s government postpones hard implementation of new e-VAT regulation

Romania’s government adopted Thursday, June 27, an emergency ordinance that changes some of the provisions in the e-VAT regulation enacted on June 21 in the sense that some of the provisions related to e-VAT will be delayed until January 1, 2025, Economedia.ro reported.

The new e-VAT regulation is aimed at increasing VAT collection and reducing tax evasion, as Romania currently has the highest VAT gap in the EU.

However, the tight deadlines included in the initial regulation have sparked intense debate and complaints from professional associations of accountants related to the excessive volume of work involved and the deadlocks a mechanism insufficiently discussed in advance may generate.

Under the e-VAT mechanism as enforced under OUG 170/2024, the companies (subject to VAT) are compelled to explain the discrepancies between the list of VAT operations as collected by the authorities from secondary sources (primarily the e-Invoice system) and the VAT operations as declared by the companies themselves.

However, during the transitory period, companies will have longer deadlines to provide the VAT discrepancy notes.

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