When your company pays more input VAT on purchases than it collects on sales, the state owes you the difference. A VAT refund is the mechanism that actually returns that money to your bank account, rather than simply carrying it forward into the following months. For many companies, especially those in the middle of an investment or with export activity, this balance can represent significant sums locked up in the relationship with the state budget.
The good news: the right to a refund is guaranteed by law and follows the core logic of VAT, a tax that, applied correctly, should not be a cost to the business. The less comfortable news: in practice, the refund request is one of the most frequent triggers of a tax audit. Romania’s tax authority, ANAF, verifies the reality and deductibility of the amounts before returning the money, and an incomplete file or a contestable invoice can turn a simple recovery into a broad inspection.
This article explains clearly when you have VAT to recover, how to request the refund, what the file must contain, and how to prepare for the audit that will almost certainly follow. For foreign investors, the topic is doubly relevant: the refund directly affects the liquidity of the Romanian subsidiary and the reporting to the parent company abroad.
When you are entitled to a VAT refund
You have VAT to recover when, in a given tax period, deductible input VAT (from purchases) exceeds collected output VAT (from sales). The difference is called a negative VAT balance and represents, in principle, the amount you can claim back from the state.
Typical situations in which this balance arises:
- Large investments — buying machinery, equipment, real estate, or building a facility generates significant input VAT, while sales have not yet started or are still low.
- Export and intra-Community supplies — exports and supplies to companies in other EU states are generally exempt with the right of deduction: you do not collect VAT on the sale, but you deduct the VAT on the related purchases.
- Building up stock — you buy goods in advance, ahead of the selling season, accumulating input VAT.
- Start-ups and companies in launch phase — fit-out, equipment, and launch costs, without significant revenue yet.
It is important to distinguish between carrying forward the negative balance (letting it offset against output VAT in the following months) and actually requesting the refund. Carrying forward triggers no audit and brings no cash; the refund brings liquidity but opens the verification procedure.
How to request the refund: the option in the VAT return
The refund is not requested through a separate letter, but directly in the VAT return (form 300). At the end of the return, in the settlement section, you tick the option by which the negative balance is requested for refund instead of being carried forward to the next period. In practice, a single tick turns the balance into an official request.
A few procedural points to keep in mind:
- The request concerns the negative balance existing at the time the return is filed; ticking the option is equivalent to submitting the refund request.
- There is a minimum threshold below which the balance is not refunded but must be carried forward; this threshold may be updated periodically, so please check the value in force at the time of your request.
- Depending on the company’s tax behaviour and risk criteria, the refund may be processed with prior audit (inspection before payment) or with subsequent audit (faster payment, later verification).
The general legal deadline for resolving a refund request is around 45 days from filing, but this period can be suspended while ANAF requests additional documents or clarifications. In practice, a well-prepared file shortens this interval considerably.
Refund with prior vs. subsequent audit
How your request is handled depends on your classification into a tax risk class and on the company’s history. The table below summarises the differences:
| Criterion | Prior audit | Subsequent audit |
|---|---|---|
| Timing of inspection | Before the money is paid | After the money has been paid |
| Speed of receiving funds | Slower | Faster |
| Who typically falls here | New companies, large amounts, first request, risk criteria | Companies with a good record, low risk |
| Level of preparation required | High — complete file from the start | High — the audit can come at any time |
Whatever the scenario, the practical conclusion is the same: prepare the file as if the audit were coming tomorrow. A subsequent audit does not mean the money is permanently secured — if the inspection finds unjustified deducted VAT, the amounts are reclaimed, together with related charges.
What the refund file must contain
The file is the heart of the procedure. Inspectors do not merely check that the figures in the return add up correctly, but whether every purchase that generated deductible VAT is real, is intended for economic activity, and is fully documented. A solid file usually contains:
- The purchase invoices that generated deductible VAT, compliant in terms of their mandatory content.
- The contracts relating to significant purchases (suppliers, services, construction, leasing).
- Proof of payment — bank statements, payment orders, evidence of the financial flows.
- Transport and receipt documents — delivery notes, goods-received records, CMRs, proof that the goods actually entered the company.
- Proof of economic purpose — how the purchase links to the taxable activity (commissioning of equipment, use in production, resale of goods).
- For export and intra-Community supplies: customs declarations, transport documents, valid VAT numbers of the partners, proof that the goods left the country.
The most common reason amounts are rejected on refund is not fraud, but incomplete documentation: an invoice missing mandatory elements, a missing transport proof, an unsigned contract, or a purchase whose link to the economic activity cannot be demonstrated. Hence the importance of checking deductibility before filing the request.
What inspectors check: reality and deductibility
The refund audit focuses on two fundamental questions:
- Is the operation real? Did the transaction actually take place, does the good or service exist, is the supplier active and correctly registered, does the payment flow confirm the purchase?
- Is the VAT deductible? Does the purchase serve the company’s taxable operations, does it meet the formal and substantive conditions, does it not fall into the categories with limited or excluded right of deduction?
Inspectors may also check upstream partners, request clarifications, and carry out cross-checks. That is why a problematic supplier or an invoice from a company with irregular tax behaviour can affect your refund, even if you acted in good faith. Checking partners in advance is part of responsible file preparation.
How Conta Fiscal helps you
VAT refunds are an area where preparation makes the difference between receiving the money quickly and entering a prolonged audit with rejected amounts and additional charges. Conta Fiscal, with over 20 years of experience and recognised accounting expertise, prepares your complete file, checks the deductibility of each item in advance, and prepares you step by step for the tax inspection. For parent companies abroad, we also ensure documentation that is clear and traceable for group reporting.
We analyse the balance, identify any risky items before ANAF sees them, organise the documentation, and assist you throughout the audit. You can see the full range on our accounting and tax advisory services page, or learn more about how we work with our clients.
If you have a VAT balance to recover and want to file a claim that stands up to audit, get in touch and we will prepare your file properly, from the very first invoice.
Frequently asked questions
How long does a VAT refund take in Romania?
The general legal deadline is around 45 days from filing the return, but it can be suspended while ANAF requests documents or clarifications. A complete file shortens this interval considerably.
Does a refund request automatically trigger an audit?
Very often, yes. The refund can be resolved with a prior audit (before payment) or a subsequent audit (after payment), depending on the company’s tax risk. In both cases, the file must be complete and correct.
What is the difference between carrying forward and refunding the negative balance?
Carrying forward lets the negative balance offset against output VAT in the following periods, with no audit and no cash. A refund brings real liquidity but opens the verification procedure.
What happens if documents are missing from the file?
Amounts not supported by documents can be rejected on refund. The most common reason for rejection is not fraud but incomplete documentation: non-compliant invoices, missing transport proof, or unsigned contracts.
Can a newly established company claim a refund?
Yes, companies in the launch phase often have VAT to recover from investments and equipment. However, requests from new companies typically fall under prior audit, so rigorous file preparation is essential.