The 2025 Wave of NAFA tax audits in Romania: Legal remedies against tax decisions

How to protect your business in Romania during and after an NAFA tax audit: Legal Assistance, Appeals, and Suspension of enforcement

NAFA audits represent a frequent reality in the Romanian business environment, and the administrative fiscal acts issued following these controls—such as a tax assessment or any other tax decision—may have a significant impact on the activity of companies or on the financial situation of individuals, especially in the context of intensified NAFA inspections targeting both individuals and legal entities. The taxpayer holds rights recognized under the Romanian Fiscal Procedure Code and the Administrative Litigation Act, including the right to challenge an administrative act and to initiate administrative litigation proceedings for the annulment of an administrative act, which provide the legal framework necessary to defend against acts considered unlawful, with the final aim of obtaining annulment or revocation. This article analyzes the legal protection measures available to taxpayers when facing fiscal inspections and administrative acts, focusing on pre-litigation legal assistance, the administrative challenge procedure against an NAFA tax assessment, and the mechanisms of suspending tax enforcement and enforcement proceedings in Romania, often required when taxpayers disagree with a tax decision or when there is a risk of forced execution in Romania.

In this context, the Romanian law firm Pavel, Mărgărit and Associates provides specialized legal services in tax law and administrative litigation, offering complete legal assistance in managing interactions with tax authorities, from the control stage to court representation in procedures such as challenging NAFA acts, contesting the tax assessment, initiating annulment actions, and requesting suspension of enforcement or contesting forced execution. The experience of our specialized team covers a wide range of tax disputes, ensuring effective representation and protection of our clients’ rights. Thus, when facing an administrative act issued by the tax authorities, retaining a tax lawyer, a fiscal lawyer, a VAT lawyer, an income tax lawyer, a tax attorney, a lawyer for taxes or even an enforcement lawyer in Romania becomes a necessary investment, especially in procedures involving the annulment or revocation of administrative acts, suspension of enforcement in Romania, or disputes arising from tax court decision challenges.

Tax Lawyer in Romania. Legal assistance during tax audits – Representation in correspondence and hearings before NAFA issues the tax assessment

The fiscal audit phase, a preliminary stage prior to the issuance of an administrative fiscal act such as a tax assessment or other tax decision, is regulated by fiscal legislation and aims to ensure a transparent framework in which the taxpayer benefits from protection, information, and the possibility to effectively participate in clarifying the factual situation. According to Article 18 of the Romanian Fiscal Procedure Code, the taxpayer has the right to be represented by an authorized representative in relations with the tax authority, with the form and limits of representation established by law or by the power of attorney. During this stage, the taxpayer may present documents and explanations, and all information provided may influence the content of a future administrative act, potentially affecting future tax disputes or procedures before a tax attorney or tax advisor.

Complementary to this right, Article 143 of the same Code recognizes the taxpayer’s right to cooperate with the tax authority, allowing the presentation of documents and information necessary to clarify the factual situation. These procedural guarantees contribute to preventing unlawful acts that would later require filing challenges, administrative litigation actions, or actions for annulment or revocation. In tax matters, the taxpayer may request the suspension of tax enforcement, suspension of administrative acts, or even block enforcement proceedings in Romania, especially in the context of the recent increase in NAFA controls targeting individuals and companies.

Thus, the role of a specialized tax lawyer, fiscal lawyer, or VAT lawyer becomes essential to provide answers to requests, clarifications, participation in hearings, and to avoid self-incrimination during NAFA audits, particularly when dealing with taxes and duties or income tax issues identifiable through online tax check verifications.
By retaining the services of a lawyer for taxes, a tax lawyer near me, or an enforcement lawyer in Romania, the taxpayer can protect their rights, properly draft an NAFA complaint, challenge a tax assessment, initiate administrative litigation, request annulment or revocation of an administrative act, and request suspension of tax enforcement or suspension of enforcement in Romania. Likewise, a VAT lawyer and a specialist in forced execution in Romania may assist when NAFA initiates audits of individuals or companies, representing the taxpayer in procedures such as challenges to enforcement, contesting the enforcement title, or blocking abusive enforcement actions.

Challenging a Tax Assessment in Romania. How to file an administrative appeal against the tax assessment in Romania – The first legal step after the audit

After the completion of the fiscal audit and the issuance of a tax assessment or any other administrative act, the taxpayer benefits from the administrative remedy regulated by Title VIII of the Fiscal Procedure Code regarding the settlement of challenges filed against fiscal administrative acts. The right to challenge a tax decision or to contest an administrative act is regulated by Articles 268–281, and the deadline for filing the challenge is 45 days from the communication of the act, under the penalty of forfeiture pursuant to Article 270 (2). This phase often marks the beginning of formal tax disputes, during which the taxpayer may openly disagree with a tax decision and request annulment or correction.

If the challenge is not filed directly with the issuing tax authority, it must be forwarded to it within five days from receipt. The issuing authority prepares the challenge file and the report with proposed solutions and transmits them to the competent authority for settlement within the same five-day period. If the administrative act does not contain the mandatory legal elements, the challenge may be filed within three months from communication. This stage often leads to further tax court decision disputes, additional reviews of tax assessment accuracy, and broader questions regarding tax enforcement or potential enforcement proceedings in Romania.

The challenge must be filed in writing, clearly indicating the factual and legal grounds for requesting annulment or revocation of the administrative act, and must be accompanied by the necessary evidence. Grounds of illegality may include procedural defects or substantive errors, such as the incorrect application of fiscal legislation or situations involving the erroneous calculation of payment obligations, including unjustified additional liabilities or unlawful fiscal penalties. These issues frequently give rise to further tax disputes and require strategic guidance from a tax attorney or tax advisor.

A tax lawyer, fiscal lawyer, or income tax lawyer ensures legal assistance and representation in the NAFA challenge procedure, offering a thorough analysis of the legal grounds for obtaining annulment or revocation of the contested administrative act. Thus, a specialized lawyer for taxes, VAT lawyer, or tax lawyer near me can ensure compliance with all conditions necessary for a proper challenge procedure, including arguments based on evidence and claims of illegality, while also representing the taxpayer before the tax authority and preparing the case for potential tax court decision review or future enforcement in Romania issues.

Tax Lawyer in Romania. Suspension of the enforcement of the tax decision in Romania – Protecting the taxpayer until the court decides on the annulment action

The suspension of the enforcement of a fiscal administrative act represents an essential protection mechanism for the taxpayer, because in the absence of such suspension, tax enforcement begins immediately after the issuance of a tax assessment or any other tax decision. Filing an administrative challenge against an NAFA tax assessment does not automatically suspend enforcement. However, the challenging party has the right to request suspension of the fiscal act under the Romanian Administrative Litigation Act no. 554/2004, to prevent imminent damage and in well-justified cases. The suspension request must be filed within 30 days from the date the taxpayer became aware of the act, and it may be submitted together with the annulment action or separately. The court may admit the request if a security deposit is provided, and the suspension measure is enforceable by law. This mechanism is frequently used in tax disputes, particularly when taxpayers disagree with a tax decision or face risks of forced execution in Romania.

During the suspension, all effects of the fiscal administrative act are halted, and both principal and accessory tax liabilities are not recorded in the fiscal attestation certificate. This measure also applies to accessory liabilities established in other fiscal acts, even if they are not directly suspended. The suspension ceases by operation of law if the annulment action is not filed within 60 days from the date of the suspension request, and during the suspension period no penalties for delay or non-declaration are owed, except for claims administered by local fiscal authorities. These procedural safeguards play an important role in preventing abusive enforcement in Romania, limiting the actions of the tax authorities, and preserving the taxpayer’s rights until the court issues a tax court decision.

A tax lawyer, fiscal lawyer, tax attorney, or enforcement lawyer in Romania may provide the necessary legal assistance for drafting the request for suspension of enforcement and for challenging enforcement proceedings in Romania, ensuring compliance with all legal conditions for suspending the administrative act and preventing the application of an unlawful tax assessment. Turning to a specialized VAT lawyer, lawyer for taxes, income tax lawyer, or even a tax lawyer near me guarantees the correct use of legal tools designed to protect the taxpayer’s assets, including situations where NAFA initiates rapid tax enforcement or begins steps to enforce tax liabilities arising from taxes and duties or income tax recalculations.

Administrative Lawyer in Romania. The annulment action and full suspension until the final court decision – Legal mechanisms to block NAFA measures

The annulment of an administrative act establishes its illegality and renders it retroactively null, while the revocation of an administrative act terminates its effects only for the future, at the initiative of the issuing authority. After exhausting the administrative challenge procedure, usually following the rejection of the NAFA challenge of a tax assessment or other tax decision, the taxpayer may file an annulment action under Article 8 of the Administrative Litigation Act no. 554/2004, targeting both the decision resolving the administrative challenge and the initial fiscal act. The grounds invoked are not limited to those raised in the administrative challenge, allowing the taxpayer to expand arguments concerning procedural defects, substantive errors, or incorrect calculation of tax liabilities. This stage often evolves into complex tax disputes, particularly when the taxpayer continues to disagree with a tax decision or when prior tax court decision outcomes require additional judicial review.

Once the annulment action is filed, the court may order provisional measures. Under Article 14 of Act 554/2004, the taxpayer may request suspension until the judgment on the merits, which halts tax enforcement until the court rules on the substantive issues, the request being filed within 30 days and the suspension ceasing if the annulment action is not filed within 60 days. The taxpayer may also request suspension until the final ruling under Article 15 of the same law, maintaining the blockage of enforcement proceedings in Romania throughout appeals until a final tax court decision is delivered. During the suspension, the effects of the fiscal administrative act are halted, tax liabilities are not entered into the fiscal attestation certificate, and no delay or non-declaration penalties apply, except in local tax matters. If the tax authority has already initiated steps to enforce tax liabilities or begun forced execution in Romania, the taxpayer may file a challenge to enforcement within 15 days, based on a challenge to the title, in order to block the immediate application of the tax assessment and to safeguard their interests throughout the litigation.

“As the measures concerning the annulment action and the suspension of tax enforcement provided by administrative litigation legislation must be approached with attention in order to avoid missing deadlines and losing taxpayer rights,” stated Dr. Radu Pavel, Managing Partener of the Romanian law firm Pavel, Mărgărit and Associates.

In conclusion, protecting the taxpayer against unlawful fiscal acts involves a well-defined procedural path beginning with the administrative challenge of an NAFA tax assessment or tax decision, and continuing, if necessary, with administrative litigation or a judicial annulment action. In this process, the measures for suspension of enforcement—whether suspension of the administrative act or suspension of tax enforcement, including suspension of enforcement proceedings in Romania—represent essential tools for blocking the immediate effects of the fiscal act and preventing financial harm. Thus, the Romanian law firm Pavel, Mărgărit and Associates recommends retaining a tax lawyer, fiscal lawyer, VAT lawyer, tax attorney, lawyer for taxes, income tax lawyer, or enforcement lawyer in Romania, specialists in challenges to forced execution in Romania, contesting enforcement titles, and judicial revocation of administrative acts, capable of providing expert legal assistance at every stage of the tax litigation process, including situations where taxpayers disagree with a tax decision, need to respond to tax court decision outcomes, or face attempts to enforce tax liabilities arising from taxes and duties or income tax reassessments.

Pavel, Margarit and Associates Law Firm is one of the top law firms in Romania, providing high-quality legal services. The firm’s clients include multinational and domestic companies of great magnitude. In 2025, the law firm’s success stories brought it international recognition from the most prestigious international guides and publications in the field. As a result, Pavel, Margarit and Associates Law Firm ranked 3rd in Romania in the Legal 500’s ranking of business law firms with the most relevant expertise. The law firm is internationally recognized by the IFLR 1000 Financial and Corporate 2025 guide. Additionally, Pavel, Margarit and Associates Law Firm is the only law firm in Romania recommended by the international director of Global Law Experts in London in the Dispute Resolution practice area. All relevant information about Pavel, Margarit and Associates Law Firm can be found on the website www.avocatpavel.com.