Romania: VAT refund procedures for high-risk taxpayers | KPMG | GLOBAL

Romania: VAT refund procedures for "high-risk" taxpayers

Romania: VAT refund procedures for high-risk taxpayers

An amended procedure for approving value added tax (VAT) return refunds was published in the official journal of Romania on 13 April 2017. “High-risk” taxpayers will only be eligible for VAT refunds after a tax audit. A taxpayer is defined as presenting a high risk:

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  • If the tax authorities receive official reports from other institutions in relation to issues encountered during VAT refund audits: transactions carried out in breach of VAT payment/reporting requirements, failure to set the VAT taxable base, setting the VAT taxable base and/or VAT payable incorrectly, whether due to error or bad faith, omission of operations carried out, declaration of fictitious revenues or operations as well as holding double accounting records.
  • If tax-related criminal offences have been identified during a tax audit.
  • If, during a subsequent tax audit, differences have been identified which are higher than 10% of the refunded amount, but not less than LEI 50,000 for each VAT return.
  • If significant inconsistencies are identified by tax inspectors in the information contained in VIES returns and local sales and purchases lists submitted by the taxable person and/or its business partners.

 

Read an April 2017 report (English and Romanian) [PDF 356 KB] prepared by the KPMG member firm in Romania

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