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Romanian Government Proposes New Criminal Offense for Cross-Border VAT Fraud — Orbitax Tax News & Alerts

The Romanian government proposed a draft bill to amend Law No. 241/2005 on preventing and combating tax fraud. This draft bill seeks to implement Article 3 paragraph (2), letter (d) of Directive (EU) 2017/1371 to combat fraud against the financial interests of the European Union using criminal law. In particular, the draft bill introduces a new criminal offense for cross-border VAT fraud, which will carry a prison sentence of 7 to 15 years and the prohibition of certain rights. The draft bill provides that any action or inaction committed within a fraudulent scheme with a cross-border character that results in the reduction of at least EUR 10 million of EU budget resources by concealing VAT-related information will be considered a criminal offense. The draft bill also outlines the means of concealing VAT-related information, including the use or presentation of false, incorrect, or incomplete VAT-related statements, non-disclosure of VAT-related information when required by law, and presenting correct VAT-related statements to fraudulently disguise non-payment or wrongful creation of rights to VAT refunds.