Country Guide: Romania
Looking to expand your e-commerce business to Romania, then look no further, here is AVASK's guide to VAT in Romania:
Country Profile: Romania
Romanian E-commerce facts:
|Population||19.36 million |
|Currency:||Romanian Leu (RON)|
|Number of e-commerce users:||11.9 million |
|Revenue in e-commerce market:||£1.68 billion|
|Estimated market growth:||8.5% to £2.32 billion by 2024|
Romanian thresholds and additional summary:
|Distance Selling Threshold (DST)||RON 118,000|
|VAT number format:||RO 1234567890|
|VAT return period:||Monthly, or quarterly (if annual turnover is less than €100,000)|
|VAT return deadline||25th day of the month following period end|
|Annual VAT filing deadline:||Not required|
|EC sales lists reporting||Monthly|
VAT in Romania
Romania is a member of the European Union (EU) and draws up its tax rules according to the laws or directives issued from Brussels by the EU. The current VAT directive applies to all 27 member states of the European Union, and it governs the rules on VAT compliance, and in some part, covers the setting of VAT rates.
As an EU member state, Romania is obliged to implement the VAT directives, which provides guidance on VAT. Where there is a conflict, the European Union’s directive takes precedence. Romania is not a member of the Eurozone and uses its own currency, the Romanian Leu (RON). Romania is in the process of joining the Eurozone and according ro the country's National Plan to Changover to the Euro, Romania will adopt it in 2024. In Romania VAT is known as: Taxa pe Valoarea Adăugată, or TVA.
VAT registration in Romania
Both EU and non-EU businesses may trade in Romania without establishing a local presence. This is known as non-resident VAT trading. There is no VAT threshold in Romania for the registration of non-resident traders, but you will need one to record transactions and your Romanian customers will want proof that you have obtained one.
There are strict rules on the situations where VAT registration is permitted. Common scenarios that require Romanian VAT registration include:
- Importing goods into Romania;
- Organising live events, conferences, etc. in Romania;
- Holding goods in a warehouse in Romania as stock for resale;
- Buying goods within Romania that are subsequently re-sold in-country;
- Selling goods from Romania to other EU member states;
- Distance-selling to private individuals in Romania, e.g. internet retailing or trading through an e-commerce platform.
Registering for Romania VAT genrrally takes two weeks once all documentation has been submitted to the tax authority, but this varies from seller to seller and will depend on the specifics of an individual company.
Romanian VAT compliance
There are detailed rules controlling the recording and processing of Romanian transactions for VAT purposes. This includes guidelines on:
- Romanian invoice requirements;
- When to issue a Romanian tax invoice;
- Foreign currency reporting;
- Credit notes and corrections;
- Correcting entries from prior returns;
- Which accounting records must be maintained.
Romanian VAT rates
|VAT Rate||% Rate|