- Romania submits that mandatory electronic invoicing for transactions between taxable persons established in Romania,
- coupled with the obligation to report the data on those transactions to the tax administration, would provide benefits in combatting value added tax (VAT) fraud and evasion.
- It would allow the tax administration to carry out a timely and automatic verification of the consistency between the VAT declared and paid and the invoices issued and received, which would significantly improve the analytical capabilities of the Romanian tax administration.
- Further, the introduction of mandatory electronic invoicing would be a powerful tool for real-time tracking of VAT fraud chains, allowing tax authorities to take immediate action to identify and stop traders participating in such fraudulent activities.
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