Whether you’re a European or non-European company, establishing certain activities in Romania may mean you need to register for VAT. You can use a fiscal representative or tax advisor to draw up your VAT, Intrastat and ESL returns with total peace of mind in Romania.
If you deal with companies in Romania, you may be able to claim a Romanian VAT refund.
Here you can find the specifics of VAT regulations in Romania, which work alongside the harmonised framework of the EU as explained in our guide to intra-Community VAT obligations.
|VAT introduced in Romania||1993|
|VAT name in Romania||Taxa pe valoarea adaugata|
|VAT ID format in Romania||RO999999999|
|Territories with special status in Romania||n/a|
VAT rates in Romania
|Standard VAT rate||19 %|
|Reduced VAT rate (1)||9 %|
|Reduced VAT rate (2)||5 %|
|Super reduced VAT rate||n/a|
|VAT parking rate||n/a|
|Zero VAT rate||no|
Thresholds triggering VAT reporting obligations in Romania
|Intrastat threshold at introduction||900 000 RON (+/- 193 000 EUR)|
|Intrastat threshold on dispatch||900 000 RON (+/- 193 000 EUR)|
|Distance selling threshold||As of 1st July 2021, the threshold is EUR 10,000 for all intra-Community distance sales.|
Reporting frequency in Romania
|Intrastat declaration||monthly depending on threshold|
|EC Sales List (ESL) declaration||monthly|
|VAT returns||monthly depending on threshold, quarterly depending on threshold/for certain services|
VAT-related penalties in Romania
|Failure to file a VAT return||Penalty of RON 1,000 to 5,000 (approximately EUR 210 to 1,050).|
|Late payment of VAT||Penalty of 0.03% of the amount of VAT due per day overdue.|
|Failure to report ESL/DEB||Penalty of RON 1 000 to 5 000 (approx. EUR 210 to 1,050).|
Useful links on VAT in Romania
|Tax Authorities in Romania||Tax authorities|
|Ministry of Finance in Romania||Ministry of Finance|
|Check a VAT number in Romania||Check a VAT number|
|EU VAT Guide||EU VAT Guide|
The current VAT rates in Romania are as follows:
Certain transactions in Europe may require registering for VAT and filingVAT returns in Romania:
In Romania just like in other European Union countries, e-traders must register for VAT:
In addition to VAT registration, e-traders must:
You may need a VAT number in Romania to fulfil your tax obligations in this country. Indeed, certain activities such as sales, purchases and subcontracting operations may require VAT identification. To check if your activities require VAT identification in Romania, use our VAT simulator or contact us.
VAT Romanian is named Taxa pe valoarea adaugataand the VAT numbers in Romania have the following structure: RO999999999.
Registering for VATis a relatively simple formality compared to setting up a company, but in addition to obtaining a VAT number in Romaniayou’ll need to file periodic VAT returns to ensure your VAT compliance. Which is why we recommend foreign companies use a fiscal representative or tax advisor.
Companies with a VAT number in Romania must complete and submit VAT returns in Romania detailing all taxable income (sales) and expenses (costs), with the following periodicity: monthly depending on threshold, quarterly depending on threshold/for certain services.
Failure to comply with the deadlines imposed by the Romanian authorities for the deposit and payment of VAT will result in the payment of penalties . For this reason, it is recommended that foreign companies use the services of an agent or a tax representative.
These penalties are defined as follows in Romania:
In addition to VAT returns, companies may be required to provide the Romanian authorities with Intrastat & EC Sales List returns:
In principle, a non-resident company in Romania can recover all or part of the VAT incurred on its expenses.
There are three different scenarios:
*This information is subject to change without notice.
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