VAT GUIDE IN ROMANIA
ROMANIAN VAT GUIDE FOR BUSINESSES
VAT is a key component of Romania’s tax system and represents a significant source of government revenue. It is a general consumption tax applied to most goods and services supplied in Romania, as well as to imports. Romania’s VAT system is aligned with the European Union VAT Directive, as the country has been an EU member state since 2007.
VAT is administered by the Romanian tax authorities (ANAF – Agenția Națională de Administrare Fiscală), and businesses meeting certain thresholds are required to register for VAT and comply with reporting and payment obligations.
Romania also applies EU intra-community VAT rules, including the reverse charge mechanism, distance selling regulations, and special schemes such as the One-Stop Shop (OSS) for cross-border e-commerce.
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VAT Rates
Who Needs to Register for VAT?
A taxable person is anyone independently supplying taxable goods or services as part of a business, regardless of profit or intent.
The VAT registration threshold is RON 300,000 (approx. EUR 88,500) annually, applicable only to Romanian-established taxable persons.
Registration must occur within 10 days of exceeding the threshold.
VAT registration takes effect from the 1st day of the month after the request is submitted.
Non-Established Businesses
A business is considered established in Romania if it has its economic activity seat or a fixed establishment with sufficient resources for regular taxable activities. Even if it has a fixed establishment, a business is not considered established for supplies not involving that establishment.
VAT Registration Required if performing:
- Intra-EU acquisitions or supplies
- Own goods transfers
- Distance sales over EUR 10,000
- Exports
- Importing goods
- Immovable property transactions (sale or rental)
- Receiving services from other EU Member States (if liable to pay VAT)
- Providing services to other EU Member States (if beneficiary is liable to pay VAT)
Non-EU entities must appoint a fiscal representant.
VAT Obligations
VAT Invoices
Romanian taxable persons are generally required to issue a VAT invoice for all taxable supplies. A valid VAT invoice is necessary to substantiate any input VAT deduction claims.
Simplified VAT Invoices
In Romania, simplified VAT invoices may be issued for supplies with a total value (including VAT) not exceeding EUR 100 (approximately RON 500).
In specific cases where issuing a full invoice is impractical due to the nature of the activity or technical limitations, simplified invoices may also be used for amounts above EUR 100 but below EUR 400 (approx. RON 2,000).
As of 1 January 2025, simplified invoices must also include the VAT registration code or fiscal identification number of the recipient if they are a taxable person or non-taxable legal entity.
VAT Record-Keeping Businesses must retain financial documents used to prepare VAT returns, along with the VAT statements themselves. It can be stored inside or outside Romania, as long as they are readily accessible to tax authorities. However, non-electronic invoices must be stored in Romania if the business is established or has a fixed establishment in Romania.
The retention period is 10 years for standard records, 20 years for immovable capital goods
Electronic Archiving:
- Permitted for both issued and received invoices.
- Storage may be on paper or electronically, regardless of how the invoice was originally received.
- The storage location must be in a country with a mutual assistance agreement with Romania.
VAT Deadlines
Filing Frequency:
- Quarterly: For taxable persons with annual turnover below EUR 100,000 (approx. RON 500,000), unless they perform an intra-Community acquisition, after which monthly filing is required.
- Monthly: Mandatory for all other taxable persons.
Filing & Payment Deadline:
- 25th day of the month following the reporting period.
- Electronic filing only, signed with a qualified digital certificate.
VAT Payments:
Must be paid in full by the same deadline as filing.
Payments must be made in Romanian lei (RON) via bank transfer.
The VAT split-payment mechanism was abolished on 1 February 2020.
VAT Refund
Non-established and non-VAT-registered businesses may recover Romanian VAT under the same conditions as local VAT-registered businesses.
For EU Businesses (EU Directive 2008/9/EC): Eligible only if no taxable supplies were made in Romania (excluding reverse charge transactions).The refund is filed electronically via the tax portal of the business’s home Member State. The Deadline is September 30 of the year following the refund period. The refund period is Min: 3 months & Max: 1 year. Minimum amounts to ask for a refund are:
- EUR 400 for <1 year (but >3 months)
- EUR 50 for full-year or year-end claims
For Non-EU Businesses (EU 13th directive): Refunds allowed only if reciprocity exists (i.e., the claimant’s country also refunds VAT to Romanian businesses). Same deadlines and minimum amounts as for EU claims.
A tax representative is required for registration and filing.
Form 313 must be submitted electronically or in paper format with supporting documents.
Penalties for non-compliance
Late VAT Registration
Large/medium taxpayers: Fine of RON 1,000–5,000 (~EUR 200–1,000)
Others: Fine of RON 500–1,000 (~EUR 100–200)
Late VAT Payments & Filings
Interest: 0.02% per day
Late payment penalty: 0.01% per day
Late VAT returns: Fine of RON 1,000–5,000
Intrastat reports: Fine of RON 7,500–15,000
EU Sales/Acquisitions List:
Late submission: RON 1,000–5,000
Incorrect data: RON 500–1,500 (waived if corrected voluntarily)
SAF-T (Form D406)
Late submission: RON 1,000–5,000
Incorrect/incomplete data: RON 500–1,500
Errors & Omissions
Unreported obligations: Penalty of 0.08% per day
Fraud: Penalty increased by 100%
Intrastat errors: RON 7,500–15,000
EU Sales List errors: RON 500–1,500
RO e-Transport (from 1 July 2024)
Fines: EUR 4,000–20,000
Seizure of undeclared goods applies progressively:
2nd violation: 15%
3rd: 50%
4th+: 100%
No seizure for the first violation within any 12-month window
Authorized Economic Operators (AEOs) exempt until 31 March 2025
RO e-Factura (Electronic Invoicing)
1 Jan–30 June 2024:
RON 1,000–10,000 fines for non-transmission, by taxpayer size
No fines until 31 May 2024
From 1 July 2024 (B2B):
15% fine of invoice value for missing invoices
Additional RON 1,000–10,000 for delayed submissions
Same 15% fine for receiving/booking non-compliant invoices
Non-established VAT-registered entities (from Jan 2024):
Fines: RON 1,000–2,500 for late e-invoice submission
From 1 July 2025 (B2C):
RON 1,000–10,000 for missing e-invoice transmission
RO e-VAT (from 1 July 2025)
Failing to respond to VAT discrepancy notices: RON 1,000–10,000
Lack of response is treated as a VAT risk indicator, potentially triggering audits and refund blocks
Changes to VAT Registration Details
Large/medium taxpayers: RON 1,000–5,000
Small taxpayers: RON 500–1,000
Common VAT Terms
- TVA (Taxa pe valoarea adăugată) – VAT (Value Added Tax)
- Cod de înregistrare în scopuri de TVA – VAT registration code
- Declarație de TVA – VAT return
- Factura fiscală – Tax invoice
- Factură simplificată – Simplified invoice
- Achiziție intracomunitară – Intra-Community acquisition
- Livrare intracomunitară – Intra-Community supply
- Taxare inversă – Reverse charge
- Persoană impozabilă – Taxable person
- Persoană impozabilă nestabilită – Non-established taxable person
- Cota standard de TVA – Standard VAT rate
- Cota redusă de TVA – Reduced VAT rate
- Scutit de TVA – VAT exempt
- Deductibilitate TVA – VAT deductibility
- Compensare TVA – VAT offset
- Rambursare TVA – VAT refund
- Cod special de TVA – Special VAT code
- Registrul TVA la încasare – VAT cash accounting scheme
- Declaratia 300 – Form 300 (standard VAT return)
- Declaratia 390 – Form 390 (EU sales/acquisitions list)
- Declaratia D394 – Form D394 (domestic purchase/sales list)
- Declarația D406 (SAF-T) – SAF-T declaration (Form D406)
- Sistemul RO e-Factura – RO e-Invoice system
- Sistemul RO e-Transport – RO e-Transport system
- Sistemul RO e-TVA – RO e-VAT system
- Plata defalcată a TVA – Split VAT payment (no longer in use)
