[responsive_menu_pro]

VAT Registration in Romania

Register your company for VAT in Romania

Romanian businesses must register for VAT if their yearly turnover surpasses RON 300,000 or EUR 88,500, calculated using the National Bank of Romania’s exchange rate at the time of Romania joining the EU. Should this threshold be met or exceeded, the business has an obligation to finalize VAT registration within ten days following the month in which this limit was reached.

Additionally, businesses engaging in intra-community transactions in Romania are required to register for VAT if the value of these transactions exceeds EUR 10,000 in either the previous or current reporting calendar year.

Read all about VAT registration in Romania in our comprehensive guide.

VAT guide romania

Register for VAT in Romania

Registration for VAT imposes an obligation on the person to collect and remit VAT in accordance with Romanian VAT regulations, but also enables them to reclaim input VAT.

Voluntary Registration

Individuals or companies based in Romania have the option to register for VAT voluntarily, even if their turnover during a calendar year does not reach the threshold or if they engage in sales or rentals of immovable property that would typically be exempt and choose to apply the taxation regime.

Non-residents or those not previously registered for VAT in Romania may also apply for VAT registration if they are involved in either importing goods or selling and/or renting immovable property under the taxation regime.

Exemption from Registration

In Romania, individuals or companies that stay below the compulsory VAT threshold are not required to register for VAT. Nevertheless, businesses may opt for voluntary VAT registration, even if exempt, especially if they require a VAT ID for conducting transactions with other businesses within EU member states. This includes activities like intra-community sales or acquisitions that must be documented.

Exempt businesses registering for VAT must inform the tax authorities of the reason for such registration.

Selling in Romania?

We offer an end to end VAT Compliance package

Group and Divisional Registration

The Romanian VAT law’s implementation of VAT grouping differs from the concept of a VAT group as provided for in the EU VAT Directive. In Romania, if two or more legally independent taxpayers form a VAT group, they are not considered a single taxable entity. They still have to account for transactions between each other for VAT purposes and file separate VAT returns that are consolidated by a tax representative. This contradicts the idea that a VAT group should be considered a single taxable entity for VAT purposes.

 

Under Romanian VAT regulations, it is possible for two or more legally independent taxpayers who have strong financial, economic, and organizational ties to form a VAT group, provided certain conditions are met:

  • Firstly, all group members must be legally independent and registered in Romania.
  • Additionally, each member may only be a member of one VAT group and the option to form a group must be maintained for a minimum of two years.
  • Finally, all taxable persons in the group must have the same fiscal period, either monthly or quarterly.

 

The only benefit of grouping is that members can offset their VAT positions at the end of each fiscal period. Each member retains its own VAT number, and the group does not have a separate VAT registration. All members are responsible for each other’s VAT liabilities during the period they were part of the group.

 

Cancellation of Registration

The National Agency for Fiscal Administration (ANAF), under certain conditions, may cancel VAT registrations if the taxpayer:

  • Is not active.
  • Is liable for criminal tax offenses.
  • Has not, for six consecutive months, filed his/her VAT returns.
  • Was not required to apply for VAT registration in Romania in the first place.
  • It is subject to registration with the Trade Register and represents a high fiscal risk.

VAT Representative

If a company from an EU country wants to register for VAT in Romania, they can do so directly and get a Romanian VAT registration number. However, if a company from a non-EU country is liable for VAT in Romania, they need to appoint a VAT representative, who is a Romanian legal entity registered for VAT.

 

The VAT representative is jointly and severally liable with the taxpayer for their VAT obligations, without any limit. Hence, to appoint a VAT representative, an application must be submitted to the tax authorities under the rules outlined in Section 66(1) of the Fiscal Code Implementation Norms.

 

New Regulation July 2021

Starting from July 2021, updated regulations came into effect, removing country-specific VAT thresholds and introducing a uniform EU-wide distance selling threshold of EUR 10,000. Distance selling revenues falling below this threshold continue to be liable for VAT in the country of origin or the business’s home country. Meanwhile, all sales above this limit are taxable in the countries where the goods and services are delivered.

 

 

Last Updated:03/01/2024

Disclaimer

The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax

Interested in Romanian VAT updates?

Subscribe to our newsletter

Download the Romanian VAT Guide

* By downloading the guide you agree to subscribe to GVC’s monthly VAT newsletter

Contact GVC for your VAT Compliance in Romania

SUBSCRIBE TO GLOBAL VAT NEWSLETTER

Get the latest VAT information directly in your inbox and stay up to date with all VAT developments around the world.

You have Successfully Subscribed!