VAT Compliance in Romania: An Overview for Businesses

Romanian VAT Compliance can be described as a layered system conflated with different declarations and requirements, from SAF-T obligations to electronic invoicing. In this page, businesses aiming to remain compliant and looking to know the most up to date news, can find an overview of the main Romanian VAT rules. Scroll down to learn about Romanian VAT compliance requirements and how to remain compliant.

Romania: General VAT information

Romania is a complex country for VAT rules, with many elements that companies need to be aware of. These include:

Periodic VAT return (Decont de taxa pe valoarea adaugata)

Monthly
25th day of the month following the end of the tax period

Quarterly
25th day of the month following the end of the tax period

Romanian Domestic Supplies & Purchase listing (Declaraţie informativă privind livrările/prestările şi achiziţiile efectuate pe teritoriul national – D394)

Monthly
30th day of the month following the end of the tax period

SAF-T (Declarației informative D406)

Monthly/Quarterly

SAF-T Stocks (Declarației informative D406)

On-demand – a minimum 30-day deadline

SAF-T Assets (Declarației informative D406)

Deadline for the submission of Financial Statements for the year

EU Sales and Purchases List

Monthly
25th day of the month following the end of the tax period

Intrastat

Monthly
15th day of the month following the relevant month

VAT rates

19%
9%
5%
0% and Exempt

Intrastat thresholds

Arrivals: RON 1 million
Dispatches: RON 1 million

VAT rules in Romania

Romania is at the forefront of VAT compliance, having implemented a broad range of requirements, from SAF-T obligations to e-invoicing. You can find more information on the various rules and requirements here:

Romania e-invoicing

A hybrid e-reporting and e-invoicing system, the Romanian CTC mandate has been introduced gradually since 2022 - with the broader requirements applicable from January 2024. The mandate is complex, requiring impacted taxpayers to be aware of the various applicable obligations.
Find out more about Romania e-invoicing

Requirements to register for VAT in Romania

Taxable persons established in Romania are required to register for VAT purposes if their annual turnover exceeds the threshold RON 300,000 (EUR 88,500). Established entities that don’t meet the threshold may opt to register for VAT purposes.

Non-established entities are required to register for VAT purposes, regardless of annual turnover, when practicing certain activities such as Intra-Community transactions or exports.

When does VAT liability apply in Romania?

In Romania, VAT liability encompasses various transaction types – including, but not limited to, the following:

  • Supplies of goods and services for consideration with place of supply in Romania
  • Imports of goods
  • Intra-Community acquisitions of goods

Invoicing requirements in Romania

Legislation in Romania states that invoices, paper or electronic, must include the following information:

  • Invoice unique serial number
  • Invoice/delivery date
  • Supplier identification
  • Recipient identification (when they are taxable subjects as well)
  • Description of the goods or services provided
  • Taxable amount
  • Applicable tax rate

Since January 2024, the Romanian B2B e-invoicing and e-reporting mandate has applied to established taxpayers and VAT registered entities – concerning all B2B transactions with place of supply in Romania.

From January 2024, VAT-registered entities must report their invoices (regarding domestic B2B transactions) to the RO e-Factura platform within five working days of issuance.

Established taxpayers are equally required to electronically report their invoices from January 2024.

The tax authority provided a three-month grace period where no penalties will apply, meaning that penalties will be imposed from April 2024.

From July 2024, the e-reporting obligation will shift to an e-invoicing requirement for transactions between established taxpayers. If established taxpayers fail to issue the invoice electronically, the invoice must be reported within five calendar days to the RO e-Factura platform.

In addition to the invoicing content requirements, which must also be included in electronic invoices, the e-invoice must comply with certain technical requirements as well.

You can find more information about Romania’s e-invoicing rules on our dedicated Romania e-invoicing page.

Registration for OSS in Romania

The EU established the One Stop Shop (OSS) in July 2021, implementing an EU-wide 10,000-euro threshold for VAT and simplifying cross-border online sales in the region simpler. This is part of the EU VAT e-commerce package.

Following the applicable Romanian VAT rules, the following fall within the scope of the OSS regime:

  • Entities established in Romania
  • Non-EU taxable persons with a fixed establishment in Romania
  • Entities which have fixed establishments in more than one EU Member State including Romania)

These entities may choose Romania as their Member State of registration for OSS purposes.

Non-EU entities, which do not have a fixed establishment in the European Union, may also register in Romania for OSS purposes – only if carrying out distance sales of goods when the goods are dispatched from Romania or any other EU Member State.

In addition to the OSS registration, taxable persons may also apply to the Import One-Stop Shop (IOSS) in Romania which concerns B2C distance sales of goods from outside the region.

Intrastat, EU Sales and Purchases List and Domestic Supplies & Purchase listing (form 394) in Romania

Intrastat returns – which are related to the movement of goods in the European Union – are submitted in Romania if the taxable person exceeds the provided threshold.

Even though Intrastat requirements remain similar across the EU, each Member State may implement rules differently. Our Intrastat Guide is a useful tool for navigating cross-border trading in the EU.

In Romania, the Intrastat threshold for both arrivals and dispatches of goods is RON 1,000,000 (around EUR 201,000). The Intrastat return must be submitted by the 15th day of the following month.

The EU Sales and Purchases List is submitted in Romania by taxable persons carrying out Intra-Community supplies or purchases of goods or certain services. The return must be submitted by the 25th day of the following month and is not required to be submitted in tax periods where no transactions occurred.

The Domestic Supplies & Purchase listing (form 394), first implemented in July 2014, is an additional return to be submitted periodically by all VAT-registered entities in Romania. The return includes data on domestic supplies and purchases between VAT-registered entities and must be submitted by the 30th day of the month following the end of the tax period.

FAQ VAT compliance in Romania

In Romania, any entity subject to taxation (not just VAT) shall receive a tax identification number.

The number of digits in the VAT number may vary.

The Romanian periodic VAT return – Decont de taxa pe valoarea adaugata – is submitted on a monthly or quarterly basis, if the taxpayers’ annual turnover remains below the equivalent in RON of 100.000 EUR. The returns must be submitted electronically by the 25th day of the month following the end of the applicable tax period.

The VAT return must include the amount of the deductible VAT as well as the VAT charged in the tax period.

Taxable persons established in Romania are required to register for VAT purposes if the RON 300.000 (EUR 88.500) annual turnover threshold is exceeded. There is no threshold for non-established entities.

The Romanian VAT Act is part of the Fiscal Code (Codul Fiscal) of 8 September 2015, adopted by Law no. 227/2015.

The applicable VAT rates in Romania are 19%, 9%, 5% and 0%.

As a rule, the standard rate of 19% applies to all supplies of goods and services.

The reduced rates of 9% and 5% are only applicable to certain specifically identified goods and services. The 9% rate applies to:

  • Medicines for human and veterinary use
  • Food supplies
  • Hotel accommodation
  • Restaurant and catering

The reduced rate of 5% is applicable to:

  • Books, newspapers, magazines and school manuals
  • Access to museums, castles, cinemas, zoological and botanical gardens
  • Passenger transport

Exceptionally, certain transactions are taxable at a 0% rate, namely:

  • Exports of goods
  • Intra-community supplies of goods

Romania’s VAT rules provide reduced VAT rates of 9% and 5%, depending on the goods and services in question.

Taxable persons not established in the EU that fall under the obligation to register for VAT purposes in Romania are obliged to appoint a fiscal representative.

Help for VAT compliance in Romania

Looking back at this overview, it becomes clear just how fast-paced Romania’s developing VAT compliance requirements are. Sovos helps customers navigate difficult VAT compliance landscapes worldwide, by leveraging our global coverage.

We take care of compliance so you can concentrate on growing your business.