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VAT Romania 2024
- Last update: 23.02.2024
- Published: 12.12.2022
- Read in: 5 min
In Romania, VAT (value-added tax), a tax on goods and services, was introduced in 1993. In addition to the 19% rate, certain products and services are subject to reduced rates such as 9%, 5% and 0% for a selection of passenger transport services. In this article, we will describe the most important VAT issues in Romania, as well as VAT registration and settlement.
Romania's standard VAT rate
The standard VAT rate that applies to most products and services is 19%. It applies to all goods and services that are not subject to the reduced 5% and 9% VAT rates.
Reduced 9% VAT rate in Romania
The 9% VAT rate in Romania covers, for example, Such products and services as:
- catering and restaurant services
- Drinking water and water for agricultural use
- Marketing services related to the promotion of food and beverages, including those for animals, as well as food manufacturing equipment
- prostheses and medical equipment for handicapped people
Reduced 5% VAT rate in Romania
Among other things, the 5% VAT rate in Romania covers such products and services as:
- Services related to various types of amusement parks, covered by the legislation
- Organic, regional and other foods approved by competent authorities
- Selected transportation services related to recreation, such as ski lifts and boat transportation
- Heating for individuals, hospitals, churches and public institutions
- Rental of facilities related to sports and fitness
- School textbooks, books (excluding e-books), newspapers and some magazines
- Firewood (effective until at least 2029)
Reduced 0% VAT rate in Romania
In Romania, selected passenger transportation services are not subject to VAT.
Changes in VAT rates for certain products in Romania effective as of January 2024
On January 1, 2024, some goods and services in Romania were subject to different VAT rates than those that previously applied to them.
Changes in Romanian VAT from January 1, 2024 – from 9% to 19%
From January 1 in Romania, a 19% VAT rate was applied to non-alcoholic beers and products containing at least 10g of sugar per 100g of product, except for cookies and biscuits.
Changes in Romanian VAT from January 1, 2024 – from 5% to 9%
A 19% VAT rate in Romania as of January 1, 2024, also applied to:
- Social buildings,
- Delivery and installation of photovoltaic panels, solar panels, thermal systems, heat pumps, and other heating systems along with installation kits (meeting specific requirements),
- Deliveries and installations of components purchased separately for residential buildings or public administration,
- High-quality food (e.g., mountain or organic products),
- Live stock, seeds, plants, and food ingredients (unless a given product is an exception),
- Access to shopping centers, amusement parks and recreation parks, whose activities fall under CAEN codes 9321 and 9329, fairs, exhibitions, cinemas, and cultural events, other than those exempt from tax.
Changes in Romanian VAT from January 1, 2024 – from 5% to 19%
There was also an increase in the VAT rate for passenger transport for tourism purposes, as well as for tickets to sports facilities.
When is it necessary to settle VAT in Romania?
According to market forecasts, Romania’s e-commerce market is expected to grow by 200% between 2022 and 2025. This country is increasingly becoming an attractive destination for more and more companies that are expanding their sales in Europe. However, to successfully conquer this market, expansion usually involves settling VAT in Romania or under VAT OSS.
For foreign companies selling products in Romania, the obligation to settle VAT arises in two situations.
The first is when an entrepreneur warehouses goods in Romania, they are required to settle VAT in that country. This rule applies both for the use of own warehouses and whenever goods are stored by Romanian companies offering a fulfilment service.
Secondly, there is an obligation to settle VAT in Romania if total sales to EU countries within the CTSO exceed 10,000. EUR. However, with this option, it is possible to settle VAT with both the Romanian Tax Office and the VAT OSS procedure, which allows e-commerce companies to settle VAT within the EU in a simplified manner.
Deadlines for filing VAT returns and payments in Romania
The VAT is due by the 25th of the month following the accounting period.
Declarations and payments are filed on a monthly basis, although companies with a turnover of less than EUR 100,000 in the previous year, can settle quarterly.
VAT registration process in Romania
A complete set of documents is required to file a VAT registration in Romania, which include:
- A document confirming VAT registration in another EU country
- Documents confirming the readiness to carry out transactions in Romania
- Excerpt from the national commercial register
- The Statutes of the Company
If the documents are submitted correctly, the process shouldn’t take longer than 1.5 months.
It is worth noting that companies with an annual turnover of more than RON 7 million are obliged to file their returns electronically.
Potential penalties and interest for declaration irregularities or late payments
Late submission of VAT returns, inaccurate returns or late payment of VAT are subject to a penalty of up to RON 5,000.
Romanian tax office
The Romanian Tax Office’s address is:
Agenţia Naţională de Administrare Fiscală
17 Apolodor St. 050741 Bucharest
Intrastat in Romania
In addition to being obliged to register and settle VAT in Romania, some companies may also required to report Intrastat statistics. The reports contain information on the import and export of goods between EU countries and the movement of own goods between warehouses in different countries.
This obligation applies once the amount of RON 900 000 for the export or import of goods is exceeded.
Assistance with VAT registration and accounting in Romania
As VAT compliance specialists, we offer comprehensive support for VAT registration and accounting solutions across Europe. Take advantage of our free-of-charge consultation.