Criteria for assessing the fiscal risk in view of approving / maintaining VAT registrations

12/10/17

In brief

In the Official Journal no. 780 / 03.10.2017 was published the Order of ANAF President no. 2856 on the criteria for the assessment of the fiscal risk in view of approving / maintaining VAT registrations.

In detail

The Order applies to taxpayers with place of economic activity in Romania which are already registered or are requesting registration for VAT purposes in either of the following situations:

  • They estimate obtaining a turnover equal to or exceeding the EUR 65,000 exemption threshold;
  • They obtain or estimate obtaining a turnover lower than the exemption threshold, but opt to apply the normal taxation regime.

The Order provides that, starting with October 2017, taxable persons with a high fiscal risk profile will be denied registration for VAT purposes. The assessment criteria in this respect will be subject to scoring system, with the applicant being classified as having a high tax risk profile if their score is below 51 points.

The fiscal risk assessment criteria concern various aspects related to the headquarters, insolvency / bankruptcy, fiscal inactivity, temporary inactivity with the Trade Registry, rejection / cancellation of the VAT registration, outstanding tax liabilities, minor offences, crimes, income, bank account, business activity, third parties, accounting services and employees.

As regards taxable persons already registered for VAT purposes, the order also provides for the criteria for assessing the fiscal risk, both (1) in respect of the default cancellation of the registration for VAT purposes of taxpayers with a high fiscal risk profile and (2) for the re-registration for VAT purposes of taxpayers that no longer have a high fiscal risk profile. The criteria cover various conditions in respect of headquarters, employees, accounting services, reporting discrepancies and tax residence.

Order no. 2856/2017 repeals Order of ANAF President no. 605/2017 on setting the criteria for registration for VAT purposes.

[Source: ANAF Order no. 2856 / 02.10.2017, published in the Official Journal no. 780 / 03.10.2017]

The takeaway

Companies intending to register for VAT purposes and those already registered must take into account the criteria set out in the new order, so as not to be assigned a high tax risk profile, in which case they would be denied the registration for VAT purposes or have it cancelled.

Contact us

Mihaela Mitroi

Partner, Tax Services, Romania

Tel: +40 21 225 3672

Ionuț Simion

Country Managing Partner, Romania

Tel: +40 21 225 3708

Daniel Anghel

Tax and Legal Services Leader, Romania

Tel: +40 21 225.3794

Diana Coroabă

Partner, Tax Services

Tel: +40 21 225 37 94

Ionuţ Sas

Partner, Tax Services, Romania

Tel: +40 21 225 3741

Contact us

Mihaela Mitroi

Partner, Tax Services, Romania

Tel: +40 21 225 3672

Ionuț Simion

Country Managing Partner, Romania

Tel: +40 21 225 3708

Daniel Anghel

Tax and Legal Services Leader, Romania

Tel: +40 21 225.3794

Diana Coroabă

Partner, Tax Services

Tel: +40 21 225 37 94

Ionuţ Sas

Partner, Tax Services, Romania

Tel: +40 21 225 3741

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