New VAT Relief Under Law No. 177/2026 For Taxpayers With Cancelled VAT Registrations

August 2026 – On 24 August 2026, Law no. 177/2026 on the cancellation of certain tax liabilities (the “Law”) was published in the Romanian Official Gazette. The Law introduces targeted relief for certain historical VAT liabilities relating to periods during which a taxpayer’s VAT registration was cancelled.

What does the new relief cover?

The Law provides for the cancellation of additional principal VAT liabilities and related late-payment interest and penalties assessed by the tax authorities under Article 11 par. (6) or par. (8) of the Romanian Fiscal Code, for tax periods between 1 January 2019 and the date of entry into force of the Law.

The relief applies only where the taxpayer's VAT registration was cancelled under Article 316 par. (11) letters (a), (d) or (e) of the Fiscal Code, namely where the taxpayer:

• was declared inactive under the Fiscal Procedure Code;
• failed to submit VAT returns for six consecutive months / two consecutive quarters, depending on the applicable VAT period; or
• submitted VAT returns for those periods but reported neither purchases nor supplies.

Corresponding cases under the former Fiscal Code are also covered.

Under the existing Fiscal Code rules, taxpayers carrying out taxable activities while their VAT registration is cancelled remain liable for output VAT, while their right to deduct input VAT is restricted during that period. Following VAT re-registration, input VAT relating to the cancellation period may generally be recovered in accordance with the conditions laid down by the Fiscal Code.

Importantly, the Law does not amend these rules for the future. It provides a specific relief for historical liabilities falling within the scope of the Law.

Important limitation

The cancellation does not apply to transactions for which the taxpayer:

• separately stated VAT on invoices or equivalent documents; or
• collected, in whole or in part, the respective VAT from its customers.

What happens to amounts already assessed or paid?

The Law distinguishes between outstanding and already settled liabilities:

• qualifying outstanding liabilities already established through an assessment decision will be cancelled ex officio by the competent tax authority, through a cancellation decision;
• qualifying amounts already paid or otherwise settled may be refunded upon the taxpayer's request.

Furthermore, the tax authorities may no longer issue assessment decisions in respect of qualifying liabilities relating to the covered periods. Where an assessment decision was issued but not communicated before the Law entered into force, it will no longer be communicated, and the relevant amounts will be removed from the taxpayer's records.

Separate measure for agricultural cooperatives

The Law also provides for the cancellation of VAT liabilities and related ancillary liabilities assessed to agricultural cooperatives in connection with VAT deducted on purchases of agricultural machinery, for tax periods between 9 January 2024 and the date of entry into force of the Law. Amounts already settled may also be refunded upon request.

Next steps

Romania’s tax authority, ANAF, is required to issue the implementation procedures within 30 days from the entry into force of the Law.

Taxpayers whose VAT registration was cancelled from 2019 onwards should therefore review the legal grounds for the cancellation, any related tax assessment decisions and amounts already paid, as well as whether VAT was separately invoiced or collected from customers. For taxpayers falling within the scope of the new rules, the Law may result either in the automatic cancellation of outstanding VAT liabilities or in the right to claim a refund of amounts already settled.