Eligibility and Application Rules for the VAT Cash Accounting System in Romania

• The VAT cash accounting system is optional and applies when payment is collected, not when invoiced.
• It is available to VAT-registered businesses in Romania with turnover not exceeding 4,500,000 lei in the previous year.
• Eligible businesses can opt in at registration or later, with the system starting from the next tax period if the threshold is not exceeded.
• Once chosen, the system must be used until year-end, unless the turnover threshold is exceeded, in which case it ends after the following tax period.
• The turnover calculation includes all taxable, exempt, and certain foreign operations.

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.

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