Romania’s Top Court VAT Ruling Sparks Longer Audits and Higher Costs

• Romania’s Supreme Court (ÎCCJ) ruled that the right to carry forward a negative VAT balance in later VAT returns is not subject to prescription.
• Crowe Romania says the ruling may create more confusion than clarity, especially for VAT balances older than the general 5-year limitation period.
• Unclear questions remain on whether old VAT balances can be reintroduced, used for offsetting, or rechecked later even if they were not claimed for refund.
• The decision could force companies to keep records longer than current legal retention periods and may lead to longer tax inspections or higher compliance costs.

Source: financialintelligence.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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