At TBA Global, we’re dedicated to offering businesses quality compliance solutions.  We’ve now launched our renowned VAT compliance services in Romania! 

Romanian VAT basics  

VAT in Romania is known locally as Taxa pe Valoarea Adăugată (TVA).  

As a member of the European Union, Romania has implemented the EU VAT Directive which means that its VAT rules are harmonised with other Member States.  This includes general principles on VAT rates, registration and intra-EU trading rules. 

VAT regulations in Romania are primarily set by Chapter VII of the Fiscal Code 227/2015 (Titlul VII, Codul Fiscal (Legea nr. 227/2015)). 

The standard rate of VAT is currently 21%.  

A reduce rate of 11% applies to specific goods and services (e.g. food, books, newspapers etc.).  

Do I need to register for VAT in Romania? 

As an EU Member State, harmonised rules for EU VAT registration apply to non-resident businesses.    

Registration for VAT becomes mandatory when a business carries out taxable activities in Romania under any of the following circumstances:Inventory storage in Romania 

Where a business intends to import into and store inventory in Romania, they must register for VAT before the goods arrive. This includes the use of any first or third-party warehouse solutions. 

1. EU-wide distance selling threshold reached  

A business that is already registered for VAT in at least one EU Member State is eligible to make combined distance sales of up to €10,000 per annum to other Member States.  Any trading activity in excess of this threshold will require VAT registration in each Member State that the business is actively operating in, unless they register for VAT One Stop Shop (OSS). 

For non-EU businesses, there is no registration threshold; VAT registration is required from the first taxable supply or when goods are held in Romanian territory.

Marketplace facilitation – platform trading rules 

Under EU marketplace facilitation rules (Art.1 Council Directive (EU) 2017/2455), major trading platforms are considered ‘deemed suppliers’.  

For eligible transactions, the platform is responsible for collecting and remitting VAT on behalf of its sellers.  

Marketplace facilitation does not remove any obligation to register for VAT.  If a business meets any of the two registration conditions outlined above, it must register for VAT and submit its own VAT returns – even if the marketplace is handling VAT collection and remittance on their behalf. 

Additionally, businesses who have trading activity on non-eligible platforms (e.g. their own website) must assume responsibility for their VAT obligations and ensure that all transactions are declared properly. 

Fiscal representation

If your business is not resident in the EU, you will be required to appoint a fiscal representative to handle the registration process and any ongoing obligations, such as filing regular tax returns.  

What happens next? 

The registration process will usually take at least one month, although this is dependent on the Romanian Tax Authority.  

Once the application has been approved, you’ll be issued with a VAT certificate indicating successful registration.  From this point, you are obligated to begin filing timely VAT returns.  

For the first year after registration, your filing frequency will be automatically assumed as quarterly if your estimated turnover is below €100,000, and you are not making intra-EU acquisitions from other EU Member States. 

Intra-EU acquisitions are purchases made from businesses based in other EU Member States.

If your turnover exceeds €100,000 by the end of the year (or you start making intra-EU acquisitions), you must proactively switch to monthly filing and notify the tax authority.   

Failure to comply with these requirements may lead to financial penalties or suspension of trading privileges. 

Why apply with TBA? 

Our renowned compliance services have helped thousands of businesses expand their market presence with minimal fuss.  

Once you have received your Romanian VAT number, you will need to comply with ongoing obligations such as filing and payments.    Non-compliance can lead to financial penalties and suspension of your trading activities.  

TBA Global can help your business stay compliant with both current and any upcoming compliance requirements.  If you have any questions, please check out our FAQ, or contact us at info@tbaglobal.com for a free one-to-one consultation.

All information provided has been verified as accurate at the time of writing – we highly recommend booking a one-to-one consultation to ensure that you are provided with up-to-date information before making your application.