Romania

Registering for Romanian VAT

If a company is not established in Romania and is providing ‘taxable supplies’ of goods or services in Romania, it may have to obtain a non-resident VAT Number. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.

It is important that all businesses with any commercial activity in Romania register before commencing taxable transactions if applicable.

You will need to register for VAT in Romania if you meet any of the following criteria;

• If you are Importing goods into Romania from outside the European Union
• Organising events in Romania where attendees or delegates must pay admission
• Selling goods from Romania which are delivered to customers outside of Romania (business or private customers)
• Buying and selling goods in Romania (excluding domestic reverse charge)
• Acquiring goods in Romania from another EU country (Intra-community acquisitions)
• Holding inventory in Romania for sale, distribution or consignment
• Organising events in Romania where attendees or delegates must pay admission
• E-commerce sales of goods to consumers, subject to Distance Selling VAT registration thresholds

What are the Romanian VAT Thresholds?

• For EU VAT-registered companies selling goods over the internet to consumers in Romania,(distance selling), the VAT registration threshold is RON 118,000 per annum
• For foreign businesses trading in Romania that are VAT/GST/Tax registered in their home state, the VAT registration threshold is nil.

Romanian VAT Reporting

Regular Romanian VAT returns are required from non-resident traders with a VAT number. These are required to report taxable transactions in Romania, and to report any VAT due/refund from the tax payer.

VAT Returns

• Monthly VAT returns – all VAT-registered entities will start with monthly filing unless they fall under the rules of a special scheme
• Quarterly VAT returns
• Semi-Annually - report once every 6 months
• Annually - report once every 12 months

Any monthly or quarterly Romanian VAT filing for a non-resident company is due on the 25th of the month following the period end.

Types of Romanian VAT

See below a table of the Romanian VAT rates

Fiscal Representation

In accordance with the EU VAT Directives, a local Romanian fiscal representative or agent is not required by a company resident in another EU member state. However, a fiscal representative, who is jointly liable for Romanian VAT, is required for non-EU companies.

Romanian VAT Reporting

• 19% Standard All other taxable goods and services.
• 9% Reduced Foodstuffs; pharmaceutical products; medical equipment for disabled persons; hotel accommodation; water supplies; some beer; soft drinks; cut flowers and plants for food production; some agricultural supplies; some goods and services for consumption on-board transportation.
• 5% Reduced Social housing; books (excluding e-books); newspapers and periodicals; admission to cultural events; admission to sporting events; admission to amusement parks; hotel accommodation; restaurants and catering services (excluding some alcoholic beverages); take-away food; bars, cafes and nightclubs (excluding some alcoholic beverages); Residential properties
• 0% Zero Intra-community and international passenger transport