In Romania, every business registered for VAT, including both resident and non-resident entities, is obligated to file periodic preliminary VAT reports. These reports detail taxable transactions and reverse charge invoices.
The frequency of submitting VAT returns typically depends on the sales turnover of the taxable person. Taxable entities with an annual turnover below EUR 100,000 and without intra-community acquisitions are required to file their VAT returns on a quarterly basis. In contrast, all other taxpayers must submit their VAT returns monthly.
Read more about VAT recovery and VAT returns in Romania in our comprehensive guide below.
In Romania, businesses have the ability to reclaim input tax from the government. This input tax is the VAT that businesses have paid on their purchases of products and services. The VAT that is collected from customers is referred to as output tax. To successfully claim back input tax, businesses must possess the following documentation:
In certain situations, businesses in Romania might not be able to fully recover input tax or might not be eligible to recover it at all. Examples include:
Various forms of input tax include:
When a taxable entity in Romania accumulates a refundable VAT amount over RON 5,000, they have the option to either offset this amount against VAT due in future periods or reclaim it from the State Budget. However, entities deemed to be of high fiscal risk must undergo an audit before they are eligible for VAT refunds. The qualifications that may categorize a taxable person as a high fiscal risk include:
In Romania, tax authorities mandate that large and medium-sized taxpayers submit their returns electronically. Small taxpayers and non-resident taxpayers, however, have the option to file electronically as well. The categorization of taxpayers as large or medium is based on specific criteria, including their annual turnover and the tax obligations they have declared to the State Budget, as determined by the tax authorities.
Last Updated: 03/01/2024
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