- The “VAT on Collection” system allows companies to pay VAT only when they receive payment for invoices, improving cash flow and reducing credit risk.
- It is optional and mainly benefits small and medium-sized enterprises with annual turnover below 4,500,000 lei.
- Invoices under this regime must state “VAT on collection” and collection can occur via various payment methods.
- Companies exceeding the turnover threshold, belonging to a fiscal group, or not established in Romania are not eligible.
- Exit from the system occurs if the turnover threshold is exceeded or by voluntary withdrawal, and eligibility can be checked online on the ANAF website.
Source: teaha.ro
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.
Latest Posts in "Romania"
- Cash Register and POS Obligations for Occasional Cash Receipts: Legal Requirements and Tax Risks
- Romania Launches Blockchain Fiscal Receipt System to Boost Tax Transparency and Combat Fraud
- EU Rejects Romania’s Request for VAT Reverse Charge on Fruit and Vegetables
- Romania 2026: Cash Register Exemptions and Mandatory Receipt Rules for Businesses
- SAF-T Submission under ANAF Order 407/2025: Key Obligations, Deadlines, and Impact on Companies
