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