Legal framework for tax audits in Romania under the Fiscal Procedure Code
Tax audits in Romania are a standard part of the government’s strategy to ensure compliance with fiscal obligations. Managed primarily by the National Agency for Fiscal Administration (ANAF), these audits can be routine checks or targeted inspections triggered by specific risk indicators. While they are a normal element of doing business, their impact on a company can be significant, both in terms of operational disruption and potential financial liability.
The legal basis for tax audits is found in the Romanian Fiscal Procedure Code, which sets out the procedures, timelines, and rights of both taxpayers and the authorities. Understanding this framework is the first step toward reducing the risk of disputes and ensuring that your company’s financial records withstand scrutiny.
Common triggers for ANAF tax audits in Romania
Although some audits are selected randomly, many are the result of risk-based profiling. Businesses may be flagged due to discrepancies between reported revenues and VAT returns, unusual fluctuations in tax declarations, or inconsistencies in cross-border transactions. High-value transactions, sector-specific compliance risks, and information from other government bodies can also trigger inspections.
For example, companies in industries with high cash turnover, frequent export-import operations, or complex supply chains may attract closer attention from tax inspectors. Even small accounting errors or late filings can be enough to prompt an audit.
How to prepare for a tax audit in Romania before it starts
The most effective defence against a tax audit is proactive preparation. This means maintaining accurate and complete accounting records, ensuring timely submission of tax declarations, and reconciling all fiscal data across internal and external reports. Businesses should also keep clear documentation to substantiate deductions, exemptions, and other tax treatments applied.
Legal and financial teams should periodically review the company’s fiscal position, ideally conducting internal “mock audits” to identify potential vulnerabilities. This internal review can include checking contract terms for tax implications, verifying VAT compliance in cross-border operations, and ensuring proper retention of supporting documents.
Responding effectively to an ANAF audit notice
Once an audit is initiated, the company will receive formal notice from ANAF specifying the scope, objectives, and timeframe of the inspection. It is important to respond promptly and designate a responsible internal contact or legal representative to manage interactions with the tax inspectors.
During the audit, businesses have the right to be informed about the findings at each stage and to provide clarifications or supporting evidence. A cooperative and transparent approach can often reduce friction with the authorities and may help avoid unnecessary disputes. However, any request for documents or explanations should be carefully reviewed to ensure compliance with the law and the company’s rights.
How to challenge ANAF tax audit findings in Romania
If ANAF issues an adverse report or additional tax assessment, companies have the right to challenge the findings through administrative and judicial channels. The initial step is to file an administrative appeal, presenting both legal and factual arguments supported by documentary evidence. If the appeal is rejected, the matter can be taken to court, where an independent review will be conducted.
It is essential to act quickly, as strict deadlines apply to both administrative and judicial challenges. Engaging specialised tax lawyers early in the process can significantly improve the chances of reducing or overturning unjustified assessments.
Long-term tax compliance strategies to minimise audit risks
Reducing audit risk and defending against adverse findings is not just about reacting to inspections — it requires a sustainable compliance culture. Romanian companies should establish clear internal policies for tax documentation, integrate tax review processes into their financial management systems, and provide regular training for accounting and finance staff.
By combining proactive compliance with a well-prepared legal defence strategy, businesses can minimise the risk of costly disputes, protect their financial stability, and maintain good standing with the tax authorities. In a fiscal environment where audits are becoming more frequent and enforcement is more rigorous, preparation is the most valuable asset.