Order no. 2.856/2017 on establishing criteria for the assessment of fiscal risk for registration / cancellation of registration for VAT purposes was published in the Official Gazette no. 780/03.10.2017.
The order is applied starting October 2017.
The criteria for assessing the tax risk for taxable persons applying for registration for VAT purposes are 15. For each registration request, 100 points are awarded and the final score determining the level of the tax risk is calculated by summing the scores for each risk criterion (negative amounts) plus the 100 points.
The taxable person has high tax risk if the score is less than 51 points.
Criteria for assessing tax risk for taxable persons applying for VAT registration are:
- The headquarter of the taxable person being analyzed is established at the attorney’s office and is used in a legal assistance contract and the taxable person analyzed does not have a head / subsidiary offices.
The headquarters are located at the premises of a self-employed individual and are used under a contract of less than one year.
2. At least one associate / shareholder / administrator of the entity under review held a holding of more than 25% in a company under bankruptcy or insolvency proceedings over the last 5 fiscal years and the entity under review records principal outstanding tax liabilities.
3. At least one associate / shareholder / administrator of the analyzed taxable person has the capacity of associate / shareholder / administrator to at least one taxable person declared inactive during the last 5 fiscal years, without being reactivated.
4. At least one associate / administrator of the taxable person being analyzed has the capacity of associate / administrator to at least two taxable persons with the expired legal term of temporary inactivity registered with the trade register without being reactivated.
5. At least one associate / administrator of the entity under consideration owns or has held the associate / shareholder / administrator status of at least one taxable person with whom the VAT registration has been canceled during the last 5 fiscal years.
6. Entities to which associates and / or administrators of the company requesting VAT registration had the same associate / administrator status, and the respective entities have outstanding tax liabilities higher or equal to RON 50,000.
Associates / administrators have owned taxable persons who registered over the last 5 years fiscal years outstanding tax liabilities exceeding RON 50,000.
7. The associates and / or the administrators of the company record in the fiscal record contraventions and offenses provided in the fiscal record legislation.
8. The administrators of the analyzed taxable person did not obtain any income in the last 12 months preceding the filing of the application.
9. At least one of the administrators of the taxable person being analyzed is a foreign citizen who does not have a fiscal residence in Romania and the share capital of the analyzed taxable person is under RON 45,000.
10. The company does not have a bank account.
11. The analyzed taxable person does not carry out economic activities in the head and / or the secondary offices or outside them.
12. The analyzed company carries out exclusively economic activities to third parties and not to its head / secondary offices.
13. The Company does not have an economist or member of CECCAR appointed to manage the financial accounting department.
14. The analyzed taxable person has not concluded individual labor contracts.
The criteria for assessing the fiscal risk in case of cancellation of the VAT registration are 5 and are related to the headquarters, the number of employees less than one, the accounting services, the tax residence, the significant inconsistencies between the information included in the tax returns in relationship with his partners.