VAT in Romania

Romania is a member of the European Union (EU) and sets its tax rules in accordance with the laws and directives issued from Brussels by the EU. The current VAT directive applies to all 27 EU member states and determines the rules for VAT compliance, and covers, in part, the setting of VAT rates.

As an EU member state, Romania is obliged to implement the VAT directives, which provide guidance on VAT. In case of conflict, the EU directive prevails. 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 to the country's National Euro Changeover Plan, Romania will adopt the Euro in 2024. In Romania, VAT is known as Taxa pe Valoarea Adăugată, or TVA.

VAT registration in Romania

Companies, whether or not they are established in the EU, can do business in Romania without having to be established locally. This is known as non-resident VAT trading. In Romania, there is no VAT threshold for the registration of non-resident traders. However, you will need a threshold to register your transactions and your Romanian customers will want to see proof that you have obtained one. 

Strict rules have been established as to the situations in which VAT registration is allowed. The most common cases requiring Romanian VAT registration are as follows:

• Import of goods into Romania.
• Organisation of live events, conferences, etc. in Romania.
• Storage of goods in a warehouse in Romania for subsequent sale.
• The purchase of goods in Romania for resale in Romania.
• Selling Romanian products to other EU member states.
  Distance selling to private individuals in Romania, e.g. Internet retailing or trading via an e-commerce platform.

Romanian VAT registration generally takes two weeks once all the documentation has been sent to the tax authorities, but this time varies from one seller to another and will depend on the specific characteristics of each company.

VAT compliance in Romania

There are specific rules on the recording and processing of commercial transactions in Romania for the purpose of collecting VAT. This includes guidelines on:

• Romanian invoicing requirements.
• The appropriate time to issue a tax invoice in Romania.
• Information regarding foreign currencies.
• Credit notes and corrections
• Correction of entries on previous declarations.
• What accounting records must be kept.

VAT rates in Romania