Preparing for a Tax Audit in Romania: A Guide for Businesses

Any business operating in Romania can be selected for a tax audit by the National Agency for Fiscal Administration (ANAF). An audit is simply a verification that your company has calculated and paid its taxes correctly according to the Fiscal Procedure Code. While the prospect may seem intimidating, adequate preparation and a clear understanding of the process can reduce stress and help ensure a smooth outcome.

What is a tax audit?

A tax audit is an official examination of your company's financial records, accounting books and tax declarations. ANAF uses audits to check that you have complied with all fiscal obligations, including corporate income tax, VAT, payroll taxes and local taxes. Audits can be triggered randomly, as part of a risk analysis, or following a specific request, such as a VAT refund claim.

How to prepare for an audit

The key to a successful audit is organisation. You should keep all business documents in good order, generally for at least five years, as required by Romanian accounting law. When you receive an audit notice, ANAF will specify the period under review and the types of taxes being checked. Use this time to gather the relevant records.

Common documents you may need to provide include:

• Accounting registers and ledgers
• Sales and purchase invoices, both issued and received
• Bank statements and cash register reports
• Payroll records and employment contracts
• VAT returns and other tax declarations
• Contracts with suppliers and clients
• Inventory lists and fixed asset registers

It is also wise to review your own records before the auditor arrives. Look for any discrepancies or errors, and be ready to explain unusual transactions. If you work with an accountant, involve them early in the process.

During the audit

Auditors will usually work at your premises or ask you to provide documents electronically. They may also request interviews with staff. You have the right to be treated professionally and to receive clear explanations of any findings. Respond to requests in a timely manner and keep copies of everything you submit. If the auditors identify issues, they will discuss them with you and give you the chance to clarify or provide additional evidence.

After the audit

Once the examination is complete, ANAF will issue a draft audit report. You have the right to submit a written point of view within a set period, usually five working days. After considering your comments, the tax authority will issue a final report and, if additional tax is due, a tax assessment decision. If you disagree with the outcome, you can appeal administratively to ANAF within 45 days of receiving the decision. If the administrative appeal is unsuccessful, you can take the matter to court.

Tips for avoiding problems

The best defence is good record-keeping. Make sure all transactions are properly documented and that your tax returns are filed on time. Consider having an internal review or a pre-audit check by your accountant to catch potential issues early. If you are uncertain about a tax position, seek professional advice before the audit begins.

A tax audit is not a punishment; it is a routine part of business life. By staying organised and knowing your rights, you can face it with confidence.