Correcting errors in VAT returns

According to Order no. 3604/2015 for the approval of guidelines for the correction of material errors in Value Added Tax returns, VAT returns submitted by taxable persons registered for VAT purposes can be corrected for material errors by the competent fiscal authority:

  • at its initiative;
  • at the request of the taxable person;

The fiscal authority responsible for applying the present procedure is the fiscal authority to which the taxable person is registered for VAT purposes.

Material errors that can be corrected are as follows:

  • transcription errors, such as: mistakes in journal entries; reversing some of the amounts introduced in VAT return; erroneous retrieval of data from the previous tax period (ex: erroneous statement of payment balance in the previous tax period) etc.;
  • errors resulting from introducing in the VAT return of the amounts claimed for reimbursement in the previous tax period;
  • recording in the VAT return the differences in the payable VAT, observed by the control authority, other than those established by the legal regulations in this matter.

Correcting material errors in the VAT return is carried out by the VAT department of the competent fiscal authority, hereinafter referred to as the specialized department.

Correcting errors at the initiative of the tax authority

It can be performed as follows:

  • if the error can be identified in the VAT return (respectively error of computation or erroneous takeover of amounts from the previous return or VAT records), the correction will be made by the specialized department, ex officio;
  • if in the VAT return, errors are found whose cause could not be established, the specialized department will notify in writing the taxable person and request to present supporting documents to provide information and clarification necessary to correct the reported errors. The request shall include: the date, time and place for the presence of the taxable person; the legal basis of the request; the purpose of the request; the documents to be submitted by the taxable person (necessary to correct the errors).

Correcting errors at the taxpayer’s request

The taxable person submits the request for correction of the material errors together with the documents necessary for justifying the errors, by registering to the competent tax authority office or via post office, by registered letter.
If the attached documents do not justify the request for correcting material errors, the specialized department shall communicate in writing to the taxable person the date, time and place at which he shall be present at the authority’s office and the documents necessary for justifying the errors.
Based on their own findings or the documents submitted by the taxable person, the specialized department prepares a report recording the findings for errors for which the VAT return was corrected and how these errors will be corrected. Based on the report, the tax authority issues the Decision for correcting material errors in the VAT return, hereinafter referred to as the correction decision.

How long does it take until errors are corrected?

Correcting material errors in the VAT return can be made within the limitation period of the right to establish tax receivables provided by Law no. 207/2015 regarding the Fiscal Procedure Code, as subsequently amended and supplemented, respectively 5 years, starting with the 1st of July of the year following the one for which the tax obligation is due.

When the VAT return cannot be corrected

According to the order, there is only one situation where the correction of the return is not possible, namely the VAT return for tax periods that have been subject to a tax inspection or for which a tax inspection is in progress. The exception in this case is when the tax inspection authority issues a provision, requesting the correction of errors in the VAT return.