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

Number: 221       Related Measure: Improving tax and tax administration processes, including
                  through the implementation of integrated risk management
Name of the Target: Number of cash registers connected to the National Agency for Fiscal
Administration IT system
                                                                Target:
Quantitative Indicator: Number           Baseline: 150 000                    Time: Q4 2022
                                                                600 000
Context:

Target #221 is part of investment C8.I2, which aims at improving tax and tax administration processes, including through the implementation of integrated risk management. The investment is expected to have an impact on the level of tax compliance and achievement of budget revenue, ensuring a competitive market environment and increasing the efficiency of tax collection. The investment underpins C8.R1 on the reform of the National Agency for Fiscal Administration (ANAF) through digitalisation.

Target #221 requires that at least 600 000 cash registers are connected to the National Agency for Fiscal Administration’s electronic system. Through this connection in particular fraud in the area of trade should be addressed, while also contributing to reduce the VAT gap.

Target #221 is the second step in the implementation of the related investment, and it is accompanied by target #222 in this payment request, related to the share of the number of desk audits reported on the total audits carried out by the tax administration – 30%. Target #221 will be followed by targets #219, #223 and #224 as well as milestones #225, #226 and #226a, related to: staff training on the risk management system; share of the number of desk audits reported on the total audits carried out by the tax administration — 60 %; increase the number of audits by 10%; fully operational electronic risk register; Big Data/Analytics platform set-up and operational; and operationalisation of tax administration systems.

The investment has a final expected date for implementation on 31 December 2025.

Evidence Provided:

The following evidence was provided:

    i.   Summary document duly justifying how the milestone (including all the constitutive
         elements) was satisfactorily fulfilled;
    ii. An annex to the summary document, including:
             o An Excel file with a list of unique identifiers for each cash registry, in accordance
                with the national legislation, demonstrating that the cash register is connected to
                the National Agency for Fiscal Administration’s electronic system (hereinafter
                referred to as “List of Cash Registers”).
    iii. On the basis of a sample selected by the Commission the following documentary evidence
         was submitted for 60 selected cash registers:
             o “Z-type reports” of cash registers (that is, report generated from the ANAF
                electronic system), showing that the cash register is connected to National Agency
                for Fiscal Administration’s electronic system and functioning (hereinafter referred

to as “Z Reports”).

Analysis:

The justification and substantiating evidence provided by the Romanian authorities cover all