What is e-TVA: What you need to know about the new digital VAT reporting system?
In the context of authorities' efforts to digitalize taxation, the e-TVA system represents a significant step toward combating tax evasion and improving tax collection. Essentially, the main objective of this system is to reduce the gap between declared VAT and the VAT actually due.
1. What is e-TVA?
e-TVA is a tax digitalization system developed for taxpayers registered for VAT purposes. Officially implemented on August 1, 2024, the system retrieves and pre-fills VAT returns (D300) using data collected from various IT systems, including:
- The national electronic invoicing system RO e-Factura
- The national RO e-Transport system, which manages data on goods transportation
- Tax declarations, including D394 and the recapitulative statement
- Customs IT systems and electronic cash register systems (e-Case)
- The national RO e-Sigiliu system
- The national IT system RO e-SAF-T
- Other internal IT systems of the Ministry of Finance
How does it work?
The operating mechanism of the e-VAT system proposes a workflow in which the data already collected through digital systems by ANAF are correlated to ensure the accuracy of the entire VAT reporting process.
Thus, first, data collection takes place, a process through which the system integrates information from official sources, such as invoices, shipments and tax declarations to generate the pre-filled P300ETVA return. This is sent on the 5th of the month to the taxpayers.
Subsequently, the data taken is compared with those reported by the taxpayers in the D300 returns.
Following the data comparison, if significant differences are identified, over 20% or 5,000 lei, the taxpayer receives an electronic notification for clarifications. Once notified, the taxpayers are obliged to analyze the notifications and respond via SPV within 20 days, providing explanations regarding the discrepancies.
2. Which categories of taxpayers are targeted by the implementation of e-TVA?
The e-TVA system is mandatory for all taxable persons registered for VAT purposes in Romania. These include:
- Legal entities registered for VAT purposes – Small, medium, and large companies carrying out taxable economic activities in Romania. They must comply with the new VAT reporting rules and manage discrepancies notified by ANAF through the pre-filled return.
- Authorized natural persons (PFA) – VAT-registered PFAs who are required to report taxable income and use SPV to receive and analyze the pre-filled return.
- Taxpayers applying special VAT regimes – Individuals or entities using VAT on cash accounting or other special regimes, such as intra-community trade. For these, the implementation deadline for the pre-filled return has been extended until August 1, 2025.
- Importers and exporters – Entities involved in customs operations, whose data is integrated into the e-TVA system through the integrated customs IT system.
- Users of electronic cash registers – All taxpayers transmitting data through RO e-Case systems, automatically integrated into the pre-filled return
3. What does the e-TVA system imply for taxpayers?
The need to adapt IT systems
To meet e-TVA requirements, companies must modernize their IT infrastructure, including ERP systems or other tax management solutions, to ensure compatibility with the Virtual Private Space (VPS) and ANAF’s digital systems.
Automating VAT verification and reconciliation processes is recommended to reduce time and the risk of errors associated with manual handling. This involves monthly verification of data from RO e-Factura, RO e-Transport, D394 declarations, and SAF-T to quickly identify and correct discrepancies before reporting.
Managing errors and discrepancies
Although e-TVA is designed to reduce reporting errors, in practice, according to an ANAF representative, frequent issues such as duplicated data or incorrect invoice editing in RO e-Factura have been observed. Taxpayers must analyze notifications and clarify discrepancies within 20 days via SPV.
Careful verification and the use of advanced IT solutions can minimize the impact of these errors on daily operations.
Better preparation and awareness
Lack of familiarity with e-VAT requirements is a challenge for many companies, especially those involved in complex transactions. This lack of preparation can cause compliance delays and additional risks, especially for companies with cross-border operations.
International or intra-community transactions add an additional layer of difficulty. These require reconciling data from multiple sources, such as the SAF-T file, the customs system and the RO e-Factura. Managing this data in line with e-VAT requirements is essential to avoid reporting discrepancies.
4. What penalties do companies risk if they fail to comply with e-TVA regulations?
Financial fines
Failure to respond to RO e-TVA compliance notifications within 20 days may result in fines of:
- between 5,000 and 10,000 RON for large taxpayers
- between 2,500 and 5,000 RON for medium taxpayers
- 2,500 RON for other taxpayers, including individuals
These sanctions come into force on January 1, 2025, or August 1, 2025, for taxpayers applying VAT on cash accounting.
Fiscal risk indicator
- Increased likelihood of being subject to tax inspections
- Delay in the VAT refund process
Exclusion from fiscal facilities
Other sanctions associated with non-implementation
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5. The importance of integrating e-TVA with ERP systems
The implementation of e-TVA implies for TVA paying companies an additional data verification and possible justification notes in case of discrepancies between D300 and P300ETVA. In case of manual data processing, for companies with complex activities it can mean an exponential increase in the workload from an accounting point of view.
Therefore, automating VAT management and reconciliation is essential to keep up with fiscal digitalization. Senior Software’s ERP solutions, SeniorERP and SeniorXRP, help mitigate the challenges posed by e-TVA by enabling integration with ANAF digital systems and server connectivity. These ERP solutions are prepared to manage P300ETVA, verify data, and facilitate explanatory notes.
Note: Sources include Emergency Ordinances no. 70/2024 and no. 87/2024 regarding the implementation and use of the pre-filled RO e-TVA return, data utilization, and related fiscal measures, published in the Official Gazette no. 582 (June 21, 2024) and no. 608 (June 28, 2024).
For complete and up-to-date information on e-TVA, consult the official website of the National Agency for Fiscal Administration (ANAF).