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Imprisonment up to 15 Years for VAT Fraud in Romania — Orbitax Tax News & Alerts

Romania has published Law No. 125 of 19 May 2023 in the Official Gazette, which transposes Article 3(2)(d) of Directive (EU) 2017/1371 on the fight against fraud to the Union's financial interests by means of criminal law. The law provides for the introduction of a criminal offense punishable by imprisonment of 7 to 15 years and the prohibition of the exercise of certain rights for any action or inaction committed within fraudulent schemes of a cross-border nature having the effect of reducing resources of the Union budget by at least EUR 10 million through:

  • The use or presentation of false, incorrect, or incomplete declarations or documents regarding VAT;
  • Non-disclosure of VAT information, when this information must be disclosed according to the law;
  • Submitting correct VAT declarations in order to fraudulently mask the non-payment or establishment of improper rights to VAT refunds.

Law No. 125/2023 entered into force on 25 May 2023.