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Romania VAT guide

VAT compliance and reporting rules in Romania

Below is summary of the major rules provided under Romanian VAT rules (VAT Act, Chapter VII of Law 227/2015), plus adoption of EU VAT Directive provisions. Check our country VAT guides for other jurisdictions.

Our VAT Calculator & VAT Filer products on a single platform, VAT Calc, are unique in that they come with all of this included out-of-the box for Romania and scores of other countries around the world.

Romania VAT country guide

Highlights Local term Taxa pe valoarea adaugata (TVA)
VAT Rates - standard 19%
VAT Rates - reduced 9%; 5%; 0%
VAT number format RO 1234567890 (two to ten digits)
Registration threshold RON 445,500. Nil for non-residents; RON 34,000 for pan-EU digital services and goods OSS return. Intra-community acquisitions RON 34,000.
VAT Group Permitted, but not as single taxable person
VAT recovery foreign businesses Permitted, but requires reciprocity and Fiscal Representative for non-EU businesses
Fiscal Representative Required for non-EU businesses
Currency Lue, RON.  Undertaking reforms to meet the Euro € requirements
Administration Introduction VAT was introduced into Romania in July 1993. It joined the European Union on 1 January 2007
VAT laws VAT Act, Chapter VII of Law 227/2015; Also EU VAT Directive which takes supremacy as part of EU membership
Tax Authorities National Agency for Fiscal Administration (ANAF) or Agentia Nationala de Administrare Fiscala - part of Ministry of Finance. Bucharest office is responsible for non-residents.
VAT Rates Standard rate 19%
Reduced rates 9%: medical supplies; foodstuffs and non-alcoholic drinks; drinking water; hospitality services; certain agricultural supplies. 5%: books and journals; e-books (Jan 2022); cultural attractions; social housing; hotel accommodation; passenger transport
Zero-rated Intra-community passenger travel by air and sea; Exports and intra-community supplies of goods; gold to central banks; services related to vessels and aircraft; some journal publications
Exempt Education; financial services; health, dental, hospital, and social welfare; public postal; letting immovable property; betting and gambling; welfare services; international passenger transport; certain copyrights; public broadcasting
Scope of VAT Scope of VAT Provision of domestic taxable goods and services; EU imports; intra-community acquisitions; Distance selling of goods B2C (OSS or IOSS); receipt of services or goods via the reverse charge
Time of supply Goods & Services (general rule) At the time of delivery for goods and provision for services. Intra-community supplies 15th day of month after supply if no invoice issued; payments in advance on date consideration received
Reverse Charge In month of tax point per the general rule. Without an invoice, the tax point is 15th day of the month following supply.
Continuous  Services Earliest of date of invoice or last day of month of contractual payment dates
Imports At the time of entry into free circulation in Romania after Customs. Some option for deferred import VAT payment (see separate)
Goods on approval and return Date of full acceptance of the goods by the customer.
Registration VAT registration threshold RON 445,500. Nil for non-residents; RON 34,000 for pan-EU digital services and goods OSS return. Intra-community acquisitions RON 34,000.
Voluntary VAT registration Permitted for resident businesses
VAT number format RO 1234567890 (two to ten digits)
VAT Group Economic and control-related (50%+ share capital) businesses may enter into VAT group. However, they do not become single taxable person, nor share a VAT number, and no zero-rating on intra-group transactions. The group representative consolidates members' VAT return to file joint return. All members are jointly and severally liable to each others VAT liabilities. There is no outright prohibition on  holding companies joining a group if they have a VAT number. Non-residents are excluded.
Non-residents Permitted. Non-EU businesses will require a Fiscal Representative (see separate). May apply of purposed of importing goods.
Fiscal Representative Required by non-EU businesses. The Fiscal Representative becomes jointly and severally liable for their clients' VAT
Digital Services Romania participates in the EU single One Stop Shop (OSS) VAT return for digital, telecoms and broadcast services. This was formerly the MOSS regime until 30 June 2021
Pre VAT registration costs Permissible for business-related expenditure going back five years
VAT Invoices Issuance 15th day of the month following the tax point. Not required unless requested for taxis and retail transactions
Content Date; unique sequential invoice number; name and address of supplier and customer; Customer VAT number for intra-community supplies or reverse charge; date of supply or advance payment if different from invoice date; Description, quantity or units etc of supply of goods or services; price per unit; taxable amount; VAT charged; rate (broken out if supplies at different rates); total; explanation if zero-rated supply.
E-invoices RO e-invoicing eFactură
Simplified invoices Permitted for invoices exceeding €100. May exclude customer details. Must show VAT due or information to calculate it.
Self-billing Permitted with written agreement between supplier and customer. This should include facility for supplier to confirm details of invoice
Retention of invoices Ten years. Paper invoices may be digitised.
FX rules Invoices may be in other currencies, but the VAT payable should be in RON. FX rates from ECB, Romanian Central Bank or major commercial bank at time of supply.
Invoice corrections Reversal invoices may be used, with reference to original invoice 
Compliance Right to deduct Excluded: 50% of costs associated with max nine-seat passenger cars (taxi, courier, sales agents and others excluded from limit); business gifts above RON 100; alcohol
Call-off stock Following the EU's 2020 Quick Fix harmonisation reforms, stock may be transferred from an EU state to a customer location/warehouse in Romania without triggering a VAT registration and supply for a non-Romanian supplier. Title has not passed until the customer takes the goods for production and sale. At which time a zero-rated transaction may be effected. This must happen within 12 months of the original movement
Reverse Charge - B2B In addition to B2B cross-border services, the reverse charge applies: goods supplied to resident and non-resident customers. However, if non-resident supplier already Romanian VAT registered, then does not apply. Also on following domestic supplies: natural gas and electricity; laptops, tablets, games consoles, chips etc for invoices above RON 22,500; certain constructions; waste material services; CO2 and related certificates; 
Cash discounts Record full amount of invoice, and then use credit note if discount taken up.
Bad debt relief Only available when customer is declared bankrupt. Possible if customer is part of court-recognised reorganisation.
Import VAT deferment Postponed VAT accounting for imports
VAT warehouse Non-imported goods may not be included in approved warehouses for VAT exemption under VAT Directive rules. VAT registration not required (nor for bonded warehouse)
Supply & install Where are non-resident business provides an installation service with goods in Romania, the reverse charge applies and the customer becomes responsible for the VAT.
Use and enjoyment services Romania subjects to local use and enjoyment rules to: transport services for non-EU customers
Capital goods adjustment period Movable property: five years. Immovable property: 20 years
Non-residents VAT recovery EU businesses may apply for Romanian VAT reclaims through the electronic portal of the tax authorities of their company of residency (8th Directive). Quarterly claims above RON 1,750 permitted, with final claim above RON 220 by 30 Sept of following year.  Non-EU businesses must submit a paper-reclaim with supporting invoices via the Romanian authorities directly (13th Directive). Romania does require a reciprocal agreement with the country of residence of the claimant. Non-EU businesses have to appoint a Romanian resident Fiscal Representative for the reclaim process
VAT on Digital Services Romania follows the EU VAT on digital services regime, introduced in 2015. This includes participation in the One-Stop-Shop (OSS) single EU VAT return (formerly MOSS until 30 June 2021)
Live events
Distance selling threshold for goods Nil. Following the EU ecommerce VAT package reforms from 1 July 2021, local Romanian VAT must be charged on all sales by non-Romanian EU e-commerce sellers shipping from within the EU. Imported distance sales not exceeding €150 liable to Romanian sales VAT with IOSS return option
Cash accounting scheme Available to businesses with turnover not exceeding RON 4.5million per annum.
VAT registered cash tills
Statute of limitations Five years after 1 July following any error. May be extended to ten years in case of fraud
Other Romania abandoned a VAT Split Payment regime in 2020 following a ruling by the European Commission that it was disproportionate
VAT Returns Frequency Monthly. Businesses with turnover not exceeding RON 500,000 and with no intra-community supplies may file quarterly
Filing method Electronic, except for smallest taxpayers with optional paper. Local portal filing certificate required. There are modified returns for customers only registered for intra-community transactions.
Deadlines (inc payments) Returns and any VAT liability payments due by 25th of the month following the reporting period. VAT due must be submitted in RON currency.
VAT credits May be rolled over to future VAT returns. If above RON 5,000, may be reclaimed although can be subject to audit
Corrections Normally through next VAT return. Although possible to submit corrective return. Material errors should be summitted separately with written explanation of nature of change.
Non-residents Similar to residents. Fiscal Representative required for non-EU businesses
Other filings Monthly European Sales Listing for goods and services supplies without any threshold by 25th of month following. Intrastat monthly by the 15th (e-filings) of the following month for supply of goods above threshold: dispatches: RON 900k; arrivals: RON 900k. Local sales and purchases listing (Form 394) for B2B and B2C transactions. Due monthly by 30th of the month following reporting month.
SAF-T Romanian SAF-T requirements
Penalties & interest RON 1,000 to 5,000 for missed return. Unpaid VAT results in 0.02% daily interest plus 0.01% daily fine.
B2C Distance Selling returns Romania participates in the One-Stop-Shop OSS pan-EU VAT return for distance selling, introduced in July 2021.

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