are able to offer our service regarding the registration for the Valued Add Tax (VAT) in Romania
and other useful information about this tax.
A taxpayer is considered stable for VAT on business premises, respectively where key decisions are taken on the management or exercising its functions and where plants. Also, a non-resident person is considered stable in Romania for VAT in case of a fixed establishment in Romania that has sufficient technical and human resources to perform regular deliveries of taxable goods and services.
Operations in the scope of VAT in Romania are those who meet the following conditions:
- Represents a supply of goods/provision of services or payment of an operation assimilated;
- The place of delivery/supply is located in Romania;
- Are made by taxable persons;
- Are the result of economic activities.
The standard VAT rate in Romania is 24% and applies to all deliveries of goods and supplies of services, including imports, for which no exemption applies (with or without credit) or one of reduced VAT rates.
Reduced VAT rates remain unchanged (5% and 9%) and apply to supplies of goods/provision of services below:
- The reduced VAT rate of 9% in Romania is charged for all kinds of bread and bakery products, certain wheat types, human and veterinary medicines, books, newspapers and periodicals, accommodation in hotels or in locations with similar role, cinema tickets, entrance fees to museums, monuments, zoos, fairs and exhibitions, prosthetic and orthopedic products.
- The reduced rate of 5% applies to the delivery of housing as part of social policy, including homes for the elderly and pensioners, orphanages and rehabilitation centers and rehabilitation for children with disabilities. The reduced rate of 5% applies to the delivery of housing having a surface area exceeding 120 square meters and a value not exceeding a certain amount provided by the law.
Every taxable person in Romania shall be entitled to deduct VAT on purchases if they are designed to make taxable transactions.
VAT deductible for expenses incurred for the purpose of establishing operations can be inferred retrospectively after fulfilling all the conditions of deductibility of VAT, for a period not exceeding five years.
Justification tax deduction
in Romania can be made based on invoices sent electronically.
Companies that own a single authorization for simplified customs procedures issued by another Member State or performing imports of goods for VAT in Romania for which are not obliged to submit customs declarations for imports can deduct the tax due on importation of goods import declaration for VAT and excise duties.
The registration of taxable persons for VAT purposes in Romania may be made by:
- Standard registration for VAT purposes to companies established in Romania;
- Special registration for VAT purposes for acquisitions (for example public institutions, insurance companies);
- Registering for VAT to taxable persons not established/established in the EU by appointing a tax representative for VAT purposes;
- Direct registration for VAT purposes only by taxable persons established in the EU.
A Romanian company may be required to register for VAT in other EU Member States in carrying out certain transactions (for example acquisitions of goods, possession of a stock of goods in another Member State).
Any non-registered taxable persons for VAT purposes in Romania may apply for registration for import of goods and the sale or rental of property (when opted for taxation).
The tax authorities may cancel registration for VAT on its own if the taxpayer is in one of the following:
- declared inactive, or entered into temporary inactivity;
- managers / associates have found certain criminal tax offenses;
- not made any statement during a calendar quarter
- in the returns submitted in one semester were not highlighted acquisitions of goods/services or delivery of goods/services.
The annual turnover for VAT registration must be in the equivalent in RON (Romanian official currency) of 65,000 euros.
When calculating turnover are also included revenues from operations that are exempt without credit.
When a the taxable body in Romania registered for VAT purposes does not exceed the exemption threshold of EUR 65,000 in a calendar year may request deregistration for VAT purposes, by using the appropriate actions provided by the law. This action may be taken between the 1st and the 10th of each month following the tax period used (month or quarter).