Starting July 1, 2025, a new chapter begins in VAT compliance for Romanian taxpayers. With the introduction of the RO e-VAT system, businesses will need to adapt quickly to stricter rules, tighter deadlines, and potentially significant fines. The e-VAT system, designed to automate and streamline VAT reporting, also introduces a formalized process for handling discrepancies through RO e-VAT Compliance Notifications.
What is a RO e-VAT Compliance Notification?
If ANAF detects differences between your submitted VAT declarations and the pre-filled data from the e-VAT system, they will issue a compliance notification. From the moment you receive it, you have exactly 20 days to review the flagged discrepancies and submit a justified response.
This response is not optional, it's a legal obligation. According to Government Emergency Ordinance no. 70/2024, failure to respond on time will result in a financial penalty, with fines scaled by taxpayer category:
- Large taxpayers: between 5,000 and 10,000 lei
- Medium taxpayers: between 2,500 and 5,000 lei
- Other legal entities and individuals: between 1,000 and 2,500 lei
These provisions come into effect on July 1, 2025, with one exception – for businesses using the VAT cash accounting system, the rules will apply starting August 1, 2025.
What happens after you submit a response?
Once your response is submitted, ANAF will review the documentation and take action if necessary. This could range from accepting your explanation to initiating further inquiries, especially if discrepancies remain unclarified.
Importantly, any failure to respond, or a response that only partially addresses the discrepancies, will be considered a fiscal risk indicator related to VAT reporting. Starting July 1, 2025, these indicators will play a role in determining the fiscal risk status of your business.
Prevention comes first
According to Law no. 270/2017, which remains applicable under the new rules, preventive measures are prioritized before sanctions are enforced. This means ANAF must first give businesses the opportunity to remedy issues before applying fines. However, this grace does not replace the obligation to respond – inaction still leads to penalties.
Why it matters
This new e-VAT process significantly increases the pressure on companies to maintain accurate, timely, and verifiable VAT records. With data being automatically cross-referenced by ANAF, even small discrepancies can quickly trigger compliance actions. For businesses with large volumes of transactions, manual checks are no longer sustainable or safe.
Getting ready for e-VAT means putting the right processes, tools, and internal responsibilities in place now, before the deadline. Companies that delay preparation may find themselves overwhelmed by unexpected fines, compliance risk flags, or blocked refunds.
How Latitude App can help
Latitude App was developed to support automated VAT reconciliation and SAF-T validation. Our platform helps you detect discrepancies early, verify data before submission, and respond to compliance requests efficiently, minimizing the risk of fines and delays.
Want to be ready? Contact us at support@latitude-app.com and learn how we can help you automate VAT controls and stay one step ahead of e-VAT compliance challenges.
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