VAT Registration in Romania

  • Last update: 23.02.2024
  • Published: 22.09.2023
  • Read in: 4 min

Expansions, especially when operating in the e-commerce branch, are a great way to improve sales. However, they are often linked with various obstacles entrepreneurs have to overcome in order to succesfully improve their bussinesses. Some of these are undoubtedly VAT challenges one meets when entereing another market, which is no different in Romania.

In Romania, just like in other EU member states, VAT (Value-added tax) stands as a crucial component of the economic structure that is defined by various VAT regulations, among which the main is the VAT Act, Chapter VII of Law 227/2015. As a result, entrepreneurs involved in transactions with Romanian private contractors might find themselves obliged to register VAT in Romania. The details regarding when this becomes necessary and the procedure for registration are addressed in this article.

VAT Registration in Romania

From the following article you will find out:

  • What are the applicable VAT rates in Romania?
  • Who is required to register for VAT in Romania?
  • How is the registration process carried out in Romania and where can one apply for a VAT number in Romania?
  • What documents are required for VAT registration and what is the format of the Romanian VAT number?
  • What are the obligations of a Romanian VAT taxpayer?
  • What are the VAT settlement deadlines in Romania?

VAT Romania - Value Added Tax

In Romania, the standard VAT rate stands at 19%, applying to items and services not under reduced rates, which stand at 9%, 5%, and 0%.

For a detailed breakdown of the goods and services falling under each Romanian rate category, please check out our article specifically covering— VAT Romania.

When is it mandatory to register for VAT in Romania?

The obligation to register for Romanian VAT for non- EU and EU businesses aligns with similar conditions found in other EU nations, which include:

  • selling – supplies of goods and supplies of services within Romania,
  • importing and exporting goods to and from third countries,
  • storing goods within Romania and shipping them to recipients in other EU countries,
  • importing goods into Romania from other EU nations,
  • conducting intra-Community distance sales of goods exceeding a total value of €10,000.

The final point concerns the limit set for intra-Community distance sales of goods, effective from July 1, 2021, affecting businesses throughout the EU. Until this limit is exceeded in B2C transactions with other Member States, sellers can apply the VAT rate from the country of dispatch and settle VAT accordingly.

However, once this threshold is surpassed, sellers are obligated to handle VAT locally in the buyer’s country, applying the buyer’s country VAT rate and submitting the VAT return there. Alternatively, they can opt for the specialised VAT OSS procedure, consolidating all B2C intra-Community sales into a unified return for settlement.

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Need help with VAT or e-commerce accounting?

Contact us and our VAT Compliance specialists will be happy to support you. Regardless of whether it is about registration, settlements, declarations, VAT OSS or VAT EU.

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VAT registration process in Romania - where to apply for a VAT number in Romania?

Companies can apply for VAT registration in Romania by submitting the necessary application via the local tax office’s website — anaf.ro.

Which Romanian tax office handles VAT registration?

Foreign entities can carry out VAT registration at the Romanian tax office located at: Agenţia Naţională de Administrare Fiscală, 17 Apolodor St. 050741 Bucharest.

The documents required to register VAT in Romania

Businesses seeking VAT registration in Romania need to submit a set of documents alongside the application. These documents include:

  • A copy of the company’s Articles of Association,
  • an excerpt from the commercial register of the home country,
  • a notarised copy of VAT registration in the home country,
  • evidence or documents supporting business activities in Romania,
  • a copy of the passport/ID card of the company representative.

Additionally, it’s worth noting that businesses established outside the European Union are required to appoint a tax representative.

Romanian VAT number - Romania VAT ID Validation

When engaging with new endevaours within VAT scope, it’s advices to conduct Romania VAT ID validation to ensure the accuracy of the VAT numbers provided and to maintain the tax compliance. In order to do it, it’s good to know what the Romanian VAT number looks like.

The format of the Romanian VAT number consists of the prefix “RO” followed by 8 digits.

VAT obligations in Romania

A VAT-registered entity from another EU country operating in Romania must adhere to applying the relevant VAT rate to the goods and services sold in Romania, including all domestic supplies. Additionally, apart from settling VAT within Romania or through the VAT OSS procedure, they are obligated to submit local VAT returns.

Deadlines for submitting VAT returns

The standard period for submitting VAT returns in Romania is monthly, although businesses with an annual turnover of EUR 100,000 or less can choose to file returns quarterly.

Regardless of the chosen period, the deadline for submitting these declarations is the 25th day of the month following the accounting period.

Not sticking to the rules concerning VAT retuns and failure in fulfilling the obligation to pay tax may result in VAT-related penalties.

VAT registration Romania - Romanian VAT Guide - summary

Businesses engaging in intra-Community transactions exceeding the EUR 10,000 limit and selling to private buyers in Romania, VAT registration becomes a mandatory step.

Securing a Romanian VAT number can be done by online registration with the local tax office. After VAT registration, sellers are obliged to handle local settlements and declarations in the recipients’ country. Alternatively, businesses can opt for the VAT OSS procedure, allowing the consolidation of B2C intra-Community sales across all member states into a single, unified return for settlement.

If you require any assistance with VAT related matters in Romania, don’t hesitate and schedule a free consultation and our VAT Compliance specialists will handle the rest. Whether it’s VAT registration, VAT settlement issues, submitting VAT returns, VAT OSS or VAT EU.

Michał Doruch Michał od ponad 10 lat zajmuje się m.in. rozliczaniem, rejestracjami i składaniem deklaracji VAT w krajach Unii Europejskiej oraz Wielkiej Brytanii. To jednak nie wszystko! W bagażu swoich doświadczeń ma także kwestie związane z VAT OSS, raportowanie Intrastat i bezpośrednie wsparcie klientów. Z Taxology Michał jest związany od marca 2021 roku.