E-Invoicing and Pre-Filled VAT Returns

The global adoption of electronic invoicing has led to increased requirements from Tax Administrations for collecting data to generate pre-filled VAT returns.
Romania recently announced the introduction of pre-filled VAT returns, starting from August 1st, 2024, with the aim of reducing the VAT fiscal gap, increasing compliance, and mitigating tax evasion.
The data for pre-filled VAT returns in Romania will be sourced from various electronic systems, including e-invoices, electronic cash registers, and customs systems.
Despite the introduction of pre-filled VAT returns, companies in Romania still need to prepare and submit their own VAT returns, leading to potential inefficiencies and increased costs.
The premature implementation of pre-filled VAT returns in Romania raises concerns about data quality, adjustment time, and taxpayer adaptation, highlighting the need for careful planning and gradual implementation based on the experience of countries like Chile.

Author:
Diana Caceres
E-invoicing advisor- Tax tech transformation
Liwa Analytics

Click on the logo to visit the website