E-VAT: A comprehensive guide to simplifying VAT reporting with RO e-VAT

Romania’s journey into financial digital transformation is gaining momentum, and the RO e-VAT system is at the heart of this transition. While the goal is to make VAT reporting more efficient and compliance easier, this new system does come with its own set of challenges. It’s not all smooth sailing; there’s a bit more work involved, and the changes will take time to get used to. But how does it work, and what can companies do to stay ahead? Let’s break it down, and explore the key aspects of this system, the legislative framework behind it, and how tools like Latitude App can help businesses adapt seamlessly. 

  

The legal framework 

The implementation of the RO e-VAT system is governed by the following major legislative acts: 

• Emergency Ordinance 116/2023: Establishes the national RO e- VAT system as part of Romania’s broader digitization plan. 

• Emergency Ordinance 70/2024: Approves the implementation and use of the pre-filled VAT return (P300). 

• Emergency Ordinance 87/2024: Updates key compliance details, including deadlines and thresholds. 

• ANAF Order 3775/2024: Approves the model and content of the form P300 “Pre-completed RO e- VAT return”. 

• ANAF Order 6234/2024: Approves the model and content of the “Notification of RO e- VAT compliance” as well as the notification transmission procedure. 

These legal steps aim to standardize the way VAT returns are checked by the tax authorities, but in first instance it means more processes for businesses to adjust to. 

  

Key features of the RO e- VAT system 

• Pre-filled P300 VAT returns: ANAF provides a pre-completed VAT return for taxpayers (the P300 form). 

• Automated data integration: Data from various national systems, including RO e-Factura, RO e-Transport, RO e- Cash Registers, Customs integrated IT system and RO e-SAF-T, are used to pre-fill the P300 forms. 

• Deadlines: the P300 form is provided by the 5th of the month following the D300 submission deadline; for example, for January 2025, deadline for submission of the VAT return (D300) is 25th of February 2025 and deadline for receiving the pre-completed VAT return (P300) is 5th of March. 

• Compliance notifications: If there are significant discrepancies (over 20% and at least RON 5,000) between the D300 and P300 returns, ANAF will send a notification with a 20-day window for response. 

  

The upsides of RO e- VAT for businesses 

• Transparency: The integration with national systems gives businesses a clear view of the data behind the pre-filled forms. 

• Streamlined compliance: Early identification of discrepancies gives businesses a chance to address issues before potential tax audits. 

• Potential time savings in the long term: if integrated with the company’s current tax compliance system, the pre-filled P300 could help reduce manual work and errors, making submissions of VAT reporting faster. 

 

Challenges and deadlines 

• Short response window: If ANAF flags discrepancies, you’ll have just 20 days to address them. 

• Grace period: Businesses have until July 1st, 2025, to adapt fully to the new system, after which penalties will apply. 

• Delayed Rollout for Some: for businesses applying cash basis VAT the e- VAT system will be applicable starting August 1, 2025. 

  

Preparing for the future 

As the digital landscape evolves, adopting tools like Latitude App ensures businesses to: 

• Stay ahead: Meet the evolving regulatory demands without scrambling at the last minute. 

• Enhance accuracy: Minimize errors with automated reconciliations. 

• Save time: Focus on strategic goals instead of being bogged down by manual compliance tasks. 

  

The RO e- VAT system is an important step forward for VAT compliance, but let’s be real: it’ll require a bit of extra work and adjustment. Luckily, Latitude App simplifies the process, helping businesses navigate the changes and make it as painless as possible. As January 1, 2025, approaches, now is the time to get prepared and streamline your processes. 

Ready to simplify your compliance journey?