Romania Increases VAT Registration Threshold, Implements EU Small Business VAT Exemption Scheme

• Romania’s Finance Ministry increased the VAT registration threshold to RON395,000 effective September 1, 2025.
• The Government approved this measure on August 28, 2025, aligning with EU Directive 2020/285.
• Romania was one of four EU states challenged for missing the January 1, 2025, implementation deadline.
• The EU VAT Directive allows small businesses to be VAT-exempt if their turnover is below a set threshold.
• Small businesses may be exempt from VAT obligations but cannot claim VAT on inputs.
• New rules allow small businesses to use the VAT exemption in other EU states if their turnover is below the state’s threshold and EU-wide turnover is under EUR100,000.
• The Government also adopted rules for virtual event services, determining the place of supply based on the customer’s location.

Source: answerconnect.cch.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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