Settlement of claims with negative amounts in Romania | News Flash

In the Official Gazette of Romania no. 242/11.03.2022 was published the Order for approving the Procedure for settling the returns with negative amounts of value added tax with reimbursement option.

Among the most important fiscal aspects we mention the procedure for settling the returns with negative amounts of value added tax with reimbursement option, which aims to verify the special provisions regarding the reimbursement of value added tax.In order to solve the returns with negative amounts of VAT with reimbursement option, the specialized department constitutes, respectively updates the Special Database on the risk of improper refund of VAT, as well as the Special Database on taxable persons registration for VAT purposes for which the voluntary liquidation procedure has been initiated or the insolvency procedure has been opened.

The special database on the risk of improper VAT refund is a list of taxable persons about whom the tax authorities have information that they may present a tax risk of improper refund, and, if they are found in the following situations:

• The fiscal bodies receive official documents from other institutions, which aim at the fiscal aspect;
• Within the fiscal control actions, facts were found that may include elements of some offense with fiscal implications;
• On the occasion of the subsequent fiscal inspection, differences of more than 10% of the reimbursed amount were established, but not less than 50,000 lei for each VAT return that was the object of the subsequent fiscal inspection;
• Significant discrepancies were found, verified between the information entered in D394 and / or D300.

The report will contain significant discrepancies, the fact that they were not corrected later and that they have a relevant influence on the granting of an undue refund of VAT.

Furthermore, in order to settle the returns with negative amounts submitted by the taxable persons registered in the special database, it is requested to perform an analysis in order to establish if the taxable person presents a risk of undue reimbursement. Within this analysis, the existence / non-existence of the causal relationship will be established.

In the situation in which the causal report is drawn up, it is proposed to keep the taxable person in the special database, and the statement with the negative amount with reimbursement option is solved by performing the anticipated fiscal inspection.

The cancellation of the taxable person from the special database is done until the 5th of each month, starting from the reasons that were the basis for the registration and / or maintenance in this list.

Settlement of returns submitted by all categories of taxpayers

• Reimbursements with negative amounts of VAT with a refund option are subject to analysis, in order to verify the fulfillment of the conditions that generate the early tax inspection, within 5 working days from the date of filing the VAT return or from the date of issuing the decision to correct material errors in VAT return.
• The returns with negative amounts of VAT with reimbursement option for which it is not necessary to perform the anticipated fiscal inspection are solved by a VAT reimbursement decision. If the deductible / collected VAT changes compared to the amounts entered in the return, a Tax Decision is drawn up regarding the main fiscal obligations.

Settlement of returns submitted by large and medium taxpayers

• For each return with negative amounts of VAT submitted, the specialized department checks if there is a risk of undue reimbursement and if the requesting taxable person is registered in the special database.
• The returns with negative amounts of VAT with the option of reimbursement submitted by the people who have facts registered in the fiscal record are solved after the anticipated fiscal inspection, regardless of whether the applicant is registered in the special database.

Settlement of returns submitted by other taxpayers

• If the return is the first return with negative amounts of VAT with the option of reimbursement submitted by the taxable person after registration for VAT purposes, it is settled after the anticipated fiscal inspection.
• If the amount requested for reimbursement comes from a number of periods longer than the number of reporting periods used in a 12-month period, the statement is settled after the anticipated fiscal inspection, regardless of whether the applicant is at risk of improper reimbursement.
• The result of the performed analysis is mentioned in the Report on the analysis of the statement with negative amounts of VAT with reimbursement option.

Settlement of returns with advance tax inspection

• The returns with negative amounts of VAT with the option of reimbursement under advance tax inspection are sent daily, together with the documentation related to the department with fiscal inspection attributions.
• The tax inspection department sends the application file to the specialist together with the Tax Inspection Report, the Taxation Decision (if applicable), and if additional information is considered necessary, the settlement period is extended between the date of request and the date of receipt of the information.
• The extension of the term is made for the entire requested amount and cannot operate for partial amounts.
• Finally, if after the fiscal inspection no differences were established compared to the requested amount, at the latest the day after receiving the file, the draft VAT refund decision is drawn up and after the operation of the data in the special records, the file is sent for archiving.

Special provisions

If, during the settlement of the return with negative amounts of VAT with reimbursement option, the registration for VAT purposes is canceled ex officio, the procedure ends, and the negative amounts included in that return may be mentioned in the first VAT return that will be submitted after registration in VAT purposes.