As of January 2025, non-resident taxpayers registered for VAT purposes in Romania will be required to adhere to new reporting obligations. Specifically, they will need to submit Standard Audit File for Tax (SAF-T) reports. This regulatory change aligns with Romania’s broader effort to enhance tax compliance and improve VAT-related reporting mechanisms, particularly through data-driven processes. For non-resident businesses, these new requirements bring a series of key obligations that differ from those of resident taxpayers.
Key Differences in Reporting Requirements for Non-Resident vs. Resident Taxpayers
While both resident and non-resident taxpayers must comply with VAT reporting standards, the SAF-T reporting requirements for non-resident taxpayers will focus on specific data points. Non-resident taxpayers are primarily required to submit information related to sales and purchase invoices, as well as tax codes. This differs from resident taxpayers who may have broader reporting obligations under the SAF-T framework.
The SAF-T data will play a crucial role for Romania’s tax authorities, particularly for VAT reconciliation purposes. One of the primary goals of this data collection is to support the generation of pre-filled VAT returns (e-VAT). By automating and centralizing VAT data, the Romanian government aims to simplify VAT compliance and reduce errors.
Deadlines, Grace Periods, and Penalties for Non-Compliance
Under the new rules, non-resident taxpayers must submit their SAF-T returns by the last day of the month following the applicable reporting period. This means that for any transactions made in January 2025, the SAF-T report would need to be submitted by the end of February 2025.
However, in order to facilitate a smooth transition into this new reporting regime, the Romanian government has introduced a grace period. Non-resident taxpayers will not face penalties for late submissions of SAF-T reports for the first six months of 2025, provided the reports for January through June 2025 are submitted by July 31, 2025.
Once the grace period ends, penalties for non-compliance will come into effect. Businesses that fail to submit the SAF-T report in time may face fines of up to 1,000 EUR. Additionally, submissions that are incomplete or contain incorrect information can result in penalties of up to 300 EUR.
With these new SAF-T reporting requirements, non-resident taxpayers registered for VAT in Romania must prepare to adapt their accounting and reporting processes. Although the transition period offers some leeway, businesses should take proactive steps to ensure they meet the reporting deadlines and avoid potential fines. The Romanian tax authorities’ focus on using SAF-T data for VAT reconciliation and pre-filled returns underscores the importance of accurate and timely submissions.
