The High Court of Cassation and Justice has decided that the right to deduct VAT is imprescriptible, according to a ruling published in the Official Gazette.

The High Court of Cassation and Justice (ÎCCJ) published an important decision on April 20 regarding the non-prescriptibility of the right to deduct value-added tax (VAT), which came into effect upon publication in the Official Gazette. The decision was adopted following a recourse in the interest of the law formulated by the leadership board of the Brașov Court of Appeal. It establishes that the right of taxable persons to carry forward the negative balance of VAT in subsequent returns is not subject to prescription. Romanian taxpayers can thus deduct the VAT paid without being limited by deadlines, until the cessation of activity. The impact of the decision is significant for companies with disputes against the National Agency for Fiscal Administration (A.N.A.F.), which must invoke this ruling in their appeals. The decision is final and binding, having direct effects on how VAT deduction is managed in Romania.