Romania VAT Guide

What is the Standard VAT (TVA) Rate in Romania?

19%

1st Reduced VAT Rate: 9%

2nd Reduced VAT Rate: 5%

In Romania, the standard rate of VAT is 19%. This is applicable for the supply of goods or services, which are not subject to a reduced rate of VAT.

1st Reduced VAT Rate: 9% – Applicable for selected types of goods and services (certain types of sale of food and soft drinks, orthopaedic products etc.).

2nd Reduced VAT Rate: 5% – Applicable for selected types of goods and services (e.g. books, newspapers, hotel and accommodation services etc.).

Requirement to Register for VAT

Established Entities: Taxable person that has its seat, place of business or fixed establishment in RO is obliged to register for VAT, if its threshold exceeded a turnover or RON 300,000 a year. Such entity is obliged to submit a registration form within 10 days from when the threshold was exceeded.

Non-established Entities: A Non-established Entity is obliged to register for VAT if it performs an intra-Community acquisition of services or goods.

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Invoicing Requirements in Romania

An invoice must contain the following particulars:

The serial number, within one or several series, which identifies the invoice in a unique manner
Date of invoice issue
Date on which the goods/services were supplied or the date of receiving an advance payment (Provided that this date is prior to the invoice issuing date)
The name, address, and VAT registration number or, depending on the case, the fiscal identification code of the taxable person who supplied the goods or services.
The name of the supplier who is not established in Romania and who appointed a fiscal representative for himself, as well as the name, address and VAT registration number, according to art. 316, of the fiscal representative
The name and address of the beneficiary of the goods or services, as well as the VAT registration number or fiscal identification code of the beneficiary, if the latter is a taxable person or non-taxable legal person
The name of the beneficiary who is not established in Romania and who appointed a fiscal representative for himself, as well as the naming/name, address and registration number stipulated in art. 316 of the fiscal representative
The name and the quantity of the supplied goods and services, as well as the particulars stipulated in art. 266 par. (3) in defining goods, in case of intra-Community supplies of new means of transport
The taxable amount of the goods and services or, according to case, the invoiced advance payments, for every rate, exemption or non-taxable operation, the unit price, without tax, as well as rebates, deductions, discounts and other price reductions, provided that these are not included in the unit price
The indication of the applied tax rate and the amount of tax collected, expressed in Romanian Lei, depending on the tax rates

Additional References to be included

Where the invoice is issued by the beneficiary in the name and on behalf of the supplier, include the reference ‘Self-invoice’.
If a tax exemption is applied, include the reference to the applicable dispositions from this title or from the Directive 112 or any other note showing that the supply of goods or services is subject to an exemption
If the customer is the person liable for the remittance of VAT, include the reference ‘reverse charge’
Where the margin scheme for travel agents is applied, include the reference ‘margin scheme – travel agents’
Where one of the special arrangements applicable to second-hand goods, works of art, collectors’ items and antiques is applied, include the reference ‘margin scheme – second-hand goods’, ‘margin scheme – works of art’ or ‘margin scheme – collector’s items and antiques’ respectively
If the VAT becomes chargeable on the date when the payment is received for the full or partial value of the supplied goods or services, include the reference ‘VAT on receiving payment’
If a reference to other invoices or documents issued previously
If there are several invoices or documents issued for the same operation, this should also be noted

Returns and Deadlines

The periodic VAT returns and payments shall be calculated and paid every month or, in some cases, every quarter.

Monthly Returns

Taxpayer is obliged to submit the applicable VAT returns by the 25th day of the month following the relevant periods. If the deadline falls to weekend or a bank holiday, the taxpayer is obliged to submit the VAT return on the next working day at the latest.

Quarterly Returns

Taxpayer is eligible to change a filling frequency from monthly to quarterly, if the following conditions are met:

In the previous year the turnover did not exceed EUR 100,000
The taxpayer did not perform any intra-Community acquisition of goods in the previous year.

In addition, a taxpayer is also obliged to submit other VAT related reports.

EC Sales List (ESL)

In the case if it performed intra-Community supply of goods or services.

Local Listings (Form 394)

Report, containing local sale and local purchase transactions and other specific information (in accordance with the RO reporting rules). Both EC Sales List (ESL) and Local Listings (Form 394) are due by the 25th day of the month (similar to the VAT return).

Submission

Only electronical submission of the VAT return and other related reports are accepted.