In Romania, Value Added Tax (VAT) was introduced in 1993. The local name of the VAT is Taxa pe valoarea adaugata (TVA). The Romanian VAT system is administered by the Ministry of Public Finance.
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.).
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.
VAT (or TVA) Liability applies to the following transactions:
Our VAT technology platform, Comply helps companies manage their complex, country-specific tax requirements including Romania’s Taxa pe valoarea adaugata (TVA) obligations.
Using AI and machine learning, our technology puts your VAT data through over 300 automated VAT rules, checking for errors, and preparing VAT returns for approval and submission. Comply provides a full audit trail for the Romanian Tax Authorities.
An invoice must contain the following particulars:
Additional References to be included
The periodic VAT returns and payments shall be calculated and paid every month or, in some cases, every quarter.
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.
Taxpayer is eligible to change a filling frequency from monthly to quarterly, if the following conditions are met:
In addition, a taxpayer is also obliged to submit other VAT related reports.
In the case if it performed intra-Community supply of goods or services.
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).
Only electronical submission of the VAT return and other related reports are accepted.
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