Romanian tax authorities issue caution to businesses about deducting personal expenditures on taxes
Romania's National Agency for Fiscal Administration (ANAF) has announced a national campaign aimed at addressing irregularities in value-added tax (VAT) declarations. The campaign focuses on ensuring companies do not include non-business-related expenses among their deductible costs.
The discovery of these irregularities was a result of ANAF's digitalisation efforts aimed at enhancing its monitoring capabilities. The agency's improved digital systems, designed to cross-reference taxpayer data, have been instrumental in detecting these irregularities.
According to ANAF, a significant number of taxpayers have been recording purchases made for personal use as business expenses. This practice, according to the agency, generates accounting errors, distorts the tax base, and leads to a decrease in declared and paid taxes.
In response, ANAF announced plans to launch a national campaign of notifications, verifications, and potentially broader tax inspections. The campaign is aimed at ensuring compliance with fiscal regulations and correcting reported inconsistencies. Non-compliance with this requirement may lead to financial penalties during audits or inspections.
The campaign is primarily about VAT irregularities linked to personal expenses claimed as business costs. However, broader concerns about integrity and corruption within ANAF have been raised in recent political and judicial cases involving high-profile individuals and alleged bribery schemes linked to tax inspections.
For further detailed information, official announcements or reports by ANAF and specialized Romanian news outlets focusing on fiscal administration and government communications would be the best primary sources. Monitoring Romania’s Ministry of Finance or official ANAF websites will provide ongoing updates regarding the national campaign of VAT verification and inspections.
Companies should be cautious about including personal expenses in their business expenses when submitting VAT declarations, as this practice may lead to detection and financial penalties during the National Agency for Fiscal Administration's (ANAF) campaign for VAT verification and inspections. The improved digital systems at ANAF, designed to cross-reference taxpayer data, have been instrumental in uncovering such irregularities in business finance.
