Advance rulings

Taxpayers engaged in transactions with related parties may apply for an Advance Pricing Agreement. Advance Pricing Agreements are issued for a fixed period and are binding on the tax authorities if the taxpayer respects the initial conditions.

Taxpayers envisioning to perform certain transactions may also apply for binding rulings from the National Agency for Fiscal Administration. The ruling is binding on the tax authorities only if its terms and conditions have been observed by the taxpayer.

Penalties for late payment

For every full or partial day’s delay, late payment interest of 0.02 % of tax liability is applied.

Also, late payment penalties of 0.01 % for each day of delay will be imposed as of the first day following the maturity date up to and including the date of settlement.

In addition, for tax obligations incorrectly declared or not declared by the taxpayer and established by the tax inspectors during a tax audit, a penalty of 0.08 % has been introduced. The non-declaration penalty cannot exceed the level of the main tax obligation except in cases of tax evasion ascertained by the judicial bodies according to the law.

Criminal provisions

Fiscal Penalties Act

Penalties for negligent tax evasion: fines

Penalties for deliberate tax evasion: imprisonment

DAC6

DAC6 reporting obligations are in place (in line with the EU Directive). Fines for non-compliance are up to EUR 21,000.

SAF-T

SAF-T reporting obligations have been introduced starting 1 January 2022, with taxpayers being required to report mandatory accounting and tax information.

The implementation of SAF-T reporting is performed in stages, depending on the category of taxpayers. For example, large taxpayers are required to report starting 1 January 2022 (or 1 July 2022, in case a company was included on the list of large taxpayers as from 1 January 2022), while medium-sized taxpayers are required to report starting 1 January 2023. A grace period of 3 to 6 months is allowed for the taxpayers subject to SAF-T reporting obligations, depending on the reporting period.

E-Invoicing

Starting 1 January 2024, the E-Invoicing system is mandatory for supplies of goods/services with place of supply/provision in Romania, carried out (i) in B2B transactions or in relation to public institutions (other than B2G) by taxable persons established in Romania, regardless of whether they are registered for VAT purposes in Romania and (ii) in B2B transactions by non-residents registered for VAT purposes in Romania.

The legal deadline for transmitting invoices via the E-Invoicing system is 5 working days from the date of issue of the invoice, and no later than 5 working days after the 15^th day of the month following the month in which the VAT chargeable event occurs.

Failure to comply with these requirements will result in fines ranging between RON 1,000 and 10,000. The law provides for a grace period of 3 months for the application of these fines.

Starting 1 July 2024, in the case of transactions between taxable persons established in Romania, only invoices transmitted via the E-Invoicing system will be acceptable with a view to exercising VAT deduction rights. The receipt and registration by recipients of invoices that have not been recorded in the E-Invoicing system will be subject to a fine equal to the VAT amount included on the invoice.