Romanian Supreme Court Rules Negative VAT Balance Can Be Carried Forward Indefinitely

• Romania’s Supreme Court (ICCJ) ruled that a negative VAT balance may be carried forward indefinitely; it is not subject to prescription.
• The court distinguished between carrying forward a negative VAT balance and requesting a VAT refund: only the refund request creates a fiscal claim.
• Because carryforward is treated as a technical VAT adjustment mechanism, it does not create a separate debt owed by the tax authority.
• The 5-year prescription period in the Fiscal Procedure Code applies only to refund claims, not to successive VAT regularizations through carryforward.
• The decision brings legal clarity and has direct implications for taxpayers and tax authorities.

Source: blog.pwc.ro

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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