Romania joined the European Union in 2007 but is not a member of the Eurozone and trades in Romanian Leu.
VAT rates in Romania
The standard rate of VAT is 24%, and reduced rates of 5% and 9% are available.
VAT registration in Romania
The VAT registration limit in Romania is €35,000 for established businesses and zero for non-established businesses.
Distance sales have a limit of RON 118,000 for VAT registration.
The format for a VAT identification number is: RO 12345678. Every company must hold a number like this in order for accurate taxation.
VAT returns can be submitted monthly or quarterly and annual returns are not required.
Are there any Intrastat thresholds in Romania?
Yes. There is a limit of RON 900, 00 for dispatches and RON 500,000 for arrivals.
VAT recovery in Romania
- Is VAT recovery permitted for non-established non-EU businesses?
Yes, but only if a reciprocity agreement is signed – currently only with Switzerland and Turkey.
- Are there any non-VAT recoverable expenses?
Yes, recovery of input tax is restricted on certain items.
Reverse charge applies to the majority of cross border services. An extended charge applies to Romanian VAT registered customers supplied by non-established businesses.
Requirements and regulations in Romania
Any company established in a non-EU member country must appoint a tax representative to register for VAT in Romania.
Use and enjoyment rules do apply in Romania.
The period of VAT recovery by tax authorities has a timescale of 5 or 10 years in case of fraud.
Similarly, there is a period of 5 years for VAT deductions and refunds.
Please contact us for further information about paying taxes in Romania, and a member of our team will be happy to help you.