Starting in 2024, Romania takes a significant step in tax digitalization with the introduction of RO e-TVA, a system designed to simplify VAT reporting and reduce tax evasion. But what does this mean for companies, and what steps must you take to comply? Here’s an easy-to-understand guide that explains everything you need to know and how to adapt quickly. 

What is RO e-TVA and why does It matter for your business?

RO e-TVA is a new digital system that automates VAT reporting, helping companies reduce errors and save time. Authorities will have direct access to your tax data through a unified platform, increasing transparency like never before.

How does the new system work?

Through the Virtual Private Space (SPV), companies can access:

• Pre-filled VAT return (P300ETVA): An electronic document that consolidates monthly transactions.

• Compliance notifications: Alerts if discrepancies exist between submitted data and reality.

• Detailed reports: To verify the accuracy of tax filings.

The system integrates existing tax platforms, such as RO e-Invoice, RO e-Transport, RO e-Seal, RO e-Cash Registers, and RO e-SAF-T, to create a simpler and more transparent data flow.

Differences between D300 and P300ETVA

The pre-filled return (P300ETVA) differs from the D300 form:

• Automatic generation: Based on data provided through other tax platforms.

• Exclusions: Does not include information such as non-chargeable VAT, non-deductible VAT, adjustments, or the total value of services provided to entities in other EU countries.

Watch for discrepancies! Significant differences (over 20% or 5,000 RON) will trigger a notification, giving you 20 days to provide explanations.

What are the risks of non-compliance?

From 2025, penalties for failing to comply with regulations are clear:

• Large taxpayers: 5,000–10,000 RON.

• Medium taxpayers: 2,500–5,000 RON.

• Other legal or natural persons: 1,000–2,500 RON.

Taxpayers applying the VAT on collection system will be affected by these provisions starting August 1, 2025.

On December 2, the Ministry of Finance published a draft Emergency Ordinance proposing to delay the enforcement of penalties for non-compliance with e-TVA notifications until July 1, 2025. This measure gives taxpayers additional time to adapt to the requirements of the new digital tax reporting system.

How to prepare for RO e-TVA?

Adopting the system can be simpler than it seems if you follow these steps:

1. 1. 1. Update your accounting systems to ensure accurate data transmission.
      2. Train your accounting team to familiarize them with the new requirements.
      3. Consult a tax expert to avoid errors that could lead to penalties.

Why adapt now?

In the long run, RO e-TVA can make your life easier: fewer errors, more time saved, and reduced tax risks. Start adapting now to avoid last-minute stress and potential fines.

Ready for RO e-TVA?

Need help to comply? Consult a tax specialist or contact your accounting firm. The future of taxation is digital, and quick adaptation can give you a competitive edge!