(Order no. 491 / 2014, published in the Official Gazette No. 249 on 7 April 2014)

The Order amends and completes the Procedure for solving returns with negative VAT amounts and refund option, previously approved by Order no. 263 / 2010.

Among the most important changes, we note the following:

- VAT returns submitted by taxpayers other than large taxpayers, medium taxpayers or exporters, assessed as having a medium tax risk, are solved further to documentary analysis;

- returns with negative VAT amounts of up to RON 45,000 submitted by taxpayers who do not have deeds in the form of offences in the tax offence records and are not assessed by the tax authorities as having a high tax risk, are assessed as having a low tax risk and are solved by issuing the Decision for VAT reimbursement;

- for VAT returns with small tax risk, the tax authority issues the reimbursement decision within maximum 5 days from the returns’ submission;

- a special database is set up for taxpayers assigned as having a high tax risk by the tax authorities.

This Order is applicable for the VAT returns related to March 2014 / the first quarter of 2014 / the first semester of 2014 / 2014, as the case may be.

For additional information, please contact:

Venkatesh Srinivasan, Partner – Head of Tax and Legal 

Ernst & Young SRL and E. Platis, C. Bazilescu LLLP

15-17 Ion Mihalache Blvd.

Bucharest Tower Center Building, 22nd Floor

Sector 1, 011171, Bucharest, Romania

Tel: (40-21) 402 4000, Fax: (40-21) 310 7124

Email: office@ro.ey.com

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