The companies identified with fiscal risk by ANAF must submit the form 088 under a new procedure approved by Order 2393/2016.
The main change is that ANAF will not cancel any VAT code without an invitation for an interview with the taxpayer’s legal representative. In this way, the authorities create the premises of avoiding unpleasant situations when, for example, because of ineffective communication, some companies found themselves overnight without VAT code. We have to note the importance of the interview. Hopefully it will not be just a formality, especially as the procedure establishes that ANAF may decide to maintain the VAT code following information provided by the taxpayer in the form 088.
Specifically, under the new procedure, ANAF will make a monthly analysis of all societies, persons registered for VAT purposes, automatically via computer application developed at central level, based on risk criteria. Several criteria are listed, but there is a number of conditionality kept secret by the authorities.
Following this assessment, a notification is sent for submitting D088 and the subsequent documentation. The term for submission is 15 days, renewable once motivated and only with the approval of the tax authorities.
After filing 088, ANAF establishes the tax risk that might be low, medium or high. If the fiscal risk is low, the VAT code is maintained and a decision is issued accordingly. In other cases, the legal representative is invited for an interview at ANAF.
The introduction of the provision which refers to the taxpayer’s right to be heard, according to the Fiscal Procedure Code, statues that any decision will be taken after an interview with the legal representative of the taxpayer.
It is also important that, after the interview, if accurate and complete information is provided, the VAT code might be approved even if the company was originally framed to high fiscal risk.
How is the procedure working?
The order was issued under article 316 par. (11) h) of the Tax Code which provides that the VAT code is cancelled if the intention and ability to undertake economic activities are not justified. Risk analysis would apply, automatically, a set of indicators / risk criteria referring to (without limitation):
What happens after filing D088?
If the legal representative doesn’t present at ANAF headquarters (in case he is invited for an interview) or doesn’t have all the documents required, the request for VAT code is rejected.
Any decision ANAF can subsequently be appealed within 45 days.
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