Preliminary assessment of the third payment request of Romania (2024)

entities into the electronic system (SPV) developed by the Ministry of Finance and ANAF as of 1 March 2022.

The Annex of the Note No. MCB 1165/2024 underlines that the enrolment rate in the SPV was 85.1% on 31 December 2022 (1 100 041 legal persons taxpayers enrolled in SPV compared to 1 293 296 active legal entities), and the enrolment rate increased to 99.1% on 31 December 2023 (1 307 689 legal persons taxpayers enrolled in SPV compared to 1 319 245 active entities). Therefore, almost all registered legal entities use the SPV.

The monitoring of the number of new taxpayers enrolled in the SPV shall be done through specific reports resulting from the query of databases by National Centre for Financial Information.

The Annex 1 to ANAF Order No. 220/2022 provides that ANAF monitors the degree of utilizations of the SPV and specifies the responsible department. As evidenced by the reports resulting from the query of databases by the National Centre for Financial Information for April 2021 – December 2022, ANAF monitors the number of new taxpayers enrolled in the SPV through specific reports, which use data provided by the National Centre for Financial Information. These monthly reports contain information about taxpayers (both legal entities and individual persons) enrolled in the SPV, which is monitored by the ANAF, proving the satisfactorily fulfilment of the CID requirement. Commission Preliminary Assessment: Satisfactorily fulfilled

Related Measure: Reform of the National Agency for Fiscal Administration Number: 193 (ANAF) through digitalisation Name of the Milestone: Entry into force of the applicable legal framework defining the risk criteria for the classification of taxpayers. The legal framework shall be approved through an Order of the ANAF President. Qualitative Indicator: Entry into force of the Order of the ANAF president Time: Q4 2022 defining risk criteria Context:

Milestone #193 is part of reform C8.R1, which aims at modernising and digitalising the National Agency for Fiscal Administration (ANAF) to make tax collection more efficient, increasing the revenue-to-GDP ratio and reducing the VAT gap.

Milestone #193 requires the entry into force of the legal framework defining the risk criteria for the classification of the taxpayers. The legal framework shall be approved through an Order of the ANAF President.

Milestone #193 is the second step of the implementation of the reform, and it is accompanied by target #192 and milestone #194 in this payment request, which cover the additional legal persons taxpayers enrolled in the Virtual Private Space (SPV) and the entry into force of an amended legal framework in the field of activity of tax inspection bodies respectively. Milestone #193 will be followed by targets #196 and #197, related to the increase in the share of revenues collected by the tax administration by at least 2.5 percentage points of GDP and the reduction of the VAT gap by 5 percentage points respectively.

The reform has a final expected date for implementation on 30 June 2026.