VAT compliance and reporting rules in Romania 2024
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.
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Romania VAT country guide
| Highlights | Local term | Taxa pe valoarea adaugata (TVA) |
| VAT Rates - standard | 19% | |
| Rates news | 2024 Reduced VAT rate rises | |
| 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% |
| Rates news | 2024 Reduced VAT rate rises | |
| Reduced rates | 9%: medical supplies; foodstuffs; social housing; cultural attractions; hotel accommodation; hospitality services; certain agricultural supplies. 5%: books and journals; e-books (Jan 2022); 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 1 million; arrivals: RON 1 million. 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. |
