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Romania

 

News & Tips

Repeal of Register of intra-EU Operators

The obligation for a taxable person to register in the Register of Intra-Community Operators to access the VIES database and be able to use its VAT identification number for intra-EU transactions has been repealed since 01/01/2017.


Repeal of VAT registration form 088

The obligation to submit form 088 Affidavit to assess the intention and capacity to undertake economic activities involving taxable operations when registering for VAT purposes has been repealed since 01/01/2017.


VAT rate

Romania has reduced its standard VAT rate from 20% to 19% since 01/01/2017.

More VAT News & Tips - Romania

DOING BUSINESS IN ROMANIA [RO] - VAT GUIDE

 

General

VAT Directive

Romania

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

Romanian VAT numbers have 10 characters [RO + 8 digits].

 

What is the local name of the tax?

 

Taxa pe Valoarea Adaugata [TVA]

 

VAT rate

VAT Directive

Romania

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

Romania applies a standard VAT rate of 19% [as from 01/01/2017] and two reduced VAT rates: 5% and 9%.

 

See VAT rates applied in the EU.  

VAT return

VAT Directive

Romania

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided those ones do not exceed one year. 

Monthly/Quarterly

Your company has to report its VAT position by filing periodical VAT returns on a quarterly basis if your annual turnover of preceding year does not exceed € 100.000 and on a monthly basis otherwise.

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

Periodical VAT return must be submitted by electronic means to Romanian VAT authorities before the 25th day of the month [25 of N+1] following the tax period [month/quarter] to which it relates.

Statement

VAT Directive

Romania

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

Your company is not required to file any summarizing annual VAT return in Romania.

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative Statement [ESL - VIES return] must be drawn up for each calendar month and submitted to local VAT authorities by the 15th of the month after the end of the reporting period [month].

Filing the statement on a quarterly basis is not possible.

Payment

VAT Directive

Romania

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

The VAT due should be paid by filing dealdine for the VAT return - no later than the 25th day of the month after the end of the tax period [month/quarter] to which it relates. 

Are interim payments required?

Member States may require interim payment to be made.

Interim payments are not required.

VAT refund

VAT Directive

Romania

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for.

Special measures for foreign companies

VAT Directive

Romania

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is applicable to all supplies of goods provided the customer is established and VAT registered in Romania or not established but VAT registered through a tax representative.

 

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider. 

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is applicable to all supplies of services provided the customer is  established in Romania or not established but registered through a tax representative.

 

Have simplification measures been taken to avoid registration of the foreign company for the goods held on consignment in the country?

 

Yes

Simplification measures apply for consignment stock.

Foreign taxpayers are  therefore not required to be VAT registered in Romania provided the conditions are met.

 

Do special arrangements apply to "call-off-stock"?

 

Yes

Simplification measures apply for call-off-stock.

Foreign taxpayers are  therefore not required to be VAT registered in Romania provided the conditions are met.

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

Triangulation simplification measures can be applied even if the middleman B is VAT registered as a non-established company in Romania [Member State C].

 

VAT on import

VAT Directive

Romania

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

Romania has introduced a VAT warehousing regime applicable under specific conditions.

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

Postponed accounting via the VAT return is possible. A deferred payment for VAT and customs [similar delay] is also possible under specific conditions.

 

Miscellaneous

VAT Directive

Romania

Intrastat Threshold  

Dispatches: RON 900,000

Arrivals : RON 900,000

Distance Sales - Threshold  

RON 118,000

See various thresholds applied in the EU

Ministry of Finance   website

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