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Romania ranks last in the EU in terms of VAT collection, once again recording the largest VAT gap from the total amount that should be collected, estimated at 35.5 percent, according to the recently published report of the European Commission (EC), which uses data for 2020, says Daniel Anghel, partner, leader of Tax&Legal PwC Romania, in a document sent to AGERPRES on Monday.
Building on the already existing model of the "VAT single office" for companies making online purchases, it would mean that companies selling to consumers in another member state would have to register once for VAT purposes for the entire EU and fulfill VAT obligations through a single online portal, in a single language.
The PwC representative reminds, in context, that the Standard Audit File for Tax (SAF-T) became mandatory in Romania for large taxpayers in 2022 and will be applied in stages for the other categories of taxpayers until 2024. The VAT electronic cash registers were also connected to ANAF [the National Agency for Fiscal Administration] servers, where transactions can be tracked in real time. Also this year, the Ro e-Invoice became mandatory for economic operators in B2G (business to government) relations, as well as in the contracts concluded in the B2B (business to business) relationship, to the extent that they have as the scope of activity products with high tax risk. For the other B2B contracts, use is currently optional. According to the Ministry of Finance, following discussions with the European Commission, it is expected that Ro e-Invoice will become mandatory for all transactions in the relationship between companies, business to business (B2B), starting from January 2024," Daniel Anghel said.
According to the fiscal reforms assumed under PNRR (the National Recovery and Resilience Plan), the VAT gap should decrease in Romania by five percentage points, until 2025, and overall tax collection should be improved by 2.5 percent of GDP. ANAF's digitalization measures, such as SAF-T, electronic invoicing, RO-e Transport, connecting electronic cash registers with the ANAF server are essential for improving revenue collection and achieving objectives, he emphasizes.
