Romania: Comprehensive VAT Country Guide (2026)

1. Country Overview

2. Local VAT Term

3. VAT Rates

3.1 Standard Rate (21%)

• Recent Change: The move from 19% to 21% was part of a fiscal package (Law No. 141/2025) aimed at increasing budget revenues. This change took effect on August 1, 2025, marking Romania’s first VAT rate hike in several years. (By contrast, Romania had previously reduced its standard rate from 24% to 20% in 2016 and then to 19% in 2017, but the trend was reversed in 2025 due to fiscal policy needs.) [pbsworldwide.com] [taxation-c….europa.eu]

3.2 Reduced Rates (11% Reduced Rate)

• Medicines and medical supplies for human use (note: veterinary medicines now generally taxed at 21% after the 2025 reforms). [ey.com]
• Food and non-alcoholic beverages intended for human or animal consumption (with certain exceptions for items like alcoholic drinks, sugary beverages above a sugar-content threshold, and some confectionery, which are standard-rated). Basic foodstuffs and ingredients continue to benefit from the reduced rate. [ey.com]
• Water supply and sewerage services, including agricultural irrigation water. [ey.com]
• Agricultural supplies such as fertilizers, pesticides, seeds, and other standard farming inputs commonly used in agricultural production. [ey.com]
• Books, newspapers, and periodicals (print or electronic) except those mainly containing advertising or adult content. [ey.com], [ey.com]
• Educational and cultural admission: e.g. tickets to castles, museums, historical monuments, zoos, botanical gardens, and similar cultural or educational sites. [ey.com]
• Hotel accommodation and camping services, as well as restaurant and catering services (excluding alcoholic beverages). [ey.com]
• Firewood and certain heating supplies for home use or public institutions (during the winter season). [ey.com]
• Social housing: Certain sales of residential dwellings intended as part of social policy (e.g. low-cost housing projects for specific groups) may qualify for the 11% rate. (See section 3.4 below for transitional rules on housing.) [ey.com]

3.3 Zero-Rated and Exempt Supplies

• Zero-Rated Supplies (0% VAT): The 0% rate – effectively an exemption with credit – applies to certain cross-border or special transactions. Notably, exports of goods from Romania to non-EU countries are zero-rated (VAT is not charged, but input VAT credit is allowed). Likewise, intra-Community supplies (ICS) of goods to VAT-registered businesses in other EU member states are zero-rated in Romania, provided the conditions of proof of transport to the other EU country are met. Other 0% VAT operations include the international transport of passengers and certain services and goods linked to international trade (e.g. supplies within customs warehouses or free zones, supplies under customs duty suspension regimes, and related services). For example, goods placed in a bonded warehouse or VAT warehouse can be sold under a zero-rated treatment until they are released into free circulation (see Section 15 for more on VAT warehousing). Diplomatic and consular transactions, and qualified supplies to EU bodies, NATO forces, etc., are also zero-rated or VAT-free as per international agreements. [fonoa.com] [taxsummaries.pwc.com] [marosavat.com]
• Exempt Supplies (Exempt without Credit): A number of activities are exempt from VAT without the right to deduct input VAT, typically in line with the EU VAT Directive’s exemptions. These include financial and banking services (e.g. most traditional banking, insurance, and financial transactions), insurance and reinsurance services, healthcare and medical services, educational services provided by authorized institutions, social/welfare services, and public postal services. Real estate transactions such as the sale of old (existing) buildings and leases of immovable property are generally exempt (unless the taxpayer opts to tax them under certain conditions) – Romania allows an option to tax some otherwise exempt real estate transactions in order to reclaim VAT, but this typically requires notifying or obtaining approval from tax authorities. Additionally, certain gambling and betting activities, and specific cultural services by non-profit entities, are exempt from VAT. It’s important to note that if a business makes only VAT-exempt (no credit) supplies, it cannot recover input VAT on its costs for those activities. [taxsummaries.pwc.com] [fonoa.com], [taxsummaries.pwc.com]

3.4 Recent and Upcoming Rate Changes

• Increase to 21%: Effective 1 August 2025, the standard VAT rate was increased from 19% to 21%. This change was implemented via Law No. 141/2025, a fiscal measures law aimed at reducing the budget deficit. Businesses needed to update their systems and pricing to apply the 21% rate on all taxable sales made on or after that date. The rate hike has led to higher consumer prices in most sectors and was part of a broader package of tax changes designed to boost government revenue. [pbsworldwide.com]
• Unification of Reduced Rates: Alongside the standard rate increase, Romania eliminated its previous 5% and 9% reduced VAT rates and introduced a single reduced rate of 11% for most goods and services that had been eligible for lower VAT. This reform simplified the rate structure. The new 11% rate came into effect on 1 August 2025 and covers a broad list of items (as detailed in section 3.2 above) that were previously taxed at 5% or 9%, such as food, medicines, hospitality, etc.. [ey.com]
• Transitional 9% Rate for Housing: One temporary exception to the unified 11% rate is in the area of residential real estate. Romania preserved a 9% VAT rate on certain sales of new residential properties to individuals, under strict conditions, for a limited time. Specifically, through 31 July 2026, a 9% rate applies to the sale of a new home (with a maximum price of RON 600,000 and area up to 120 m²) to an individual buyer, if a firm commitment (a contract and substantial advance payment) was in place by 1 August 2025. These transitional rules aim to honor transactions that were agreed under the old VAT regime. After July 2026, this last 9% rate concession for housing will expire, and such sales will then also fall under the 11% reduced rate (or standard rate if conditions aren’t met). [ey.com]
• Historical Context: Prior to 2016, Romania’s standard VAT was 24%. It was cut to 20% in 2016 and then to 19% in January 2017 as part of tax reduction measures. The recent 2025 increase to 21% marks a reversal of that trend, driven by fiscal consolidation needs. The reduced VAT rates also saw changes: the 5% and 9% tiers were introduced over the 2010s to support various sectors (food, pharmaceuticals, tourism, housing, etc.), but as noted were merged into 11% in 2025. Businesses should stay alert for any future changes, as the Romanian tax environment can be volatile and subject to short-notice amendments. [taxation-c….europa.eu]

4. VAT Number Format

5.1 Mandatory Registration Thresholds

• Domestic (Romanian-established businesses): A company or individual established in Romania is required to register for VAT once its annual turnover exceeds RON 300,000 (approximately €88,500) in a calendar year. This threshold applies to the total taxable turnover of VAT-liable supplies (sales of goods and services that would be subject to VAT if registered). If a business crosses this threshold in a given year, it must apply for VAT registration (becoming a “plătitor de TVA”) and start charging VAT on its taxable sales. The RON 300,000 threshold is relatively low, reflecting an EU-allowed scheme to relieve very small businesses. Taxable persons below the threshold may remain unregistered (not charging VAT on their sales, but then they cannot reclaim input VAT on purchases). [fonoa.com]
  • Note: The RON 300,000 threshold has remained unchanged since Romania’s EU accession (it is defined as the RON equivalent of €35,000 at the 2007 conversion rate). There have been discussions about raising the threshold (e.g. to RON 500,000 or higher), but as of 2026 the threshold is still RON 300,000. Businesses must monitor their revenue and apply for VAT registration within 10 days from the end of the month in which the threshold was exceeded. [taxsummaries.pwc.com]
• Non-Resident Businesses: For companies not established in Romania, there is no monetary threshold – any amount of taxable activity in Romania can trigger a registration requirement. If a foreign business (with no fixed establishment in Romania) supplies goods or services that are “taxable in Romania”, it generally must register prior to making the supply. In practice, common triggers for non-resident VAT registration include: [fonoa.com]
  • Importing goods into Romania (to sell or use within Romania). [fonoa.com]
  • Supplying goods within Romania (domestic sales) where the reverse-charge does not apply (see Section 15 on reverse charge). [marosavat.com]
  • Selling goods from Romania to consumers in other EU countries without using OSS (distance sales) beyond the small-seller threshold (see Section 18).
  • Intra-Community acquisitions or supplies of goods in Romania (purchasing goods from other EU countries to bring into Romania, or selling and delivering goods to other EU countries). [marosavat.com]
  • Certain B2B services: While most services a foreign supplier provides to a Romanian business fall under reverse-charge (no local reg needed), if a foreign company provides services with a place of supply in Romania that are not subject to reverse charge, it must register. For example, a non-EU company providing services connected to Romanian real estate would have to register and charge Romanian VAT, since such services are taxed where the property is located (Romania) and not covered by the general B2B reverse charge. These cases are relatively rare. [marosavat.com]
  • Exercising the option to tax certain exempt supplies (e.g. opting to tax a real estate sale which is normally exempt) may also require the supplier to be VAT-registered.
  For non-established businesses, “occasional” supplies: Romanian law provides that if a non-established entity undertakes only a very infrequent, one-off supply in Romania (no more than once in a year) and it does not involve an intra-Community acquisition of goods or a distance sale, VAT registration may not be necessary. However, this is interpreted narrowly, and in practice most foreign businesses will register if they have any recurring or significant activity in Romania. [marosavat.com]

5.2 Voluntary Registration

5.3 EU OSS & IOSS Schemes

• ~Union OSS (EU-wide B2C sales): Under the EU e-commerce VAT rules (since July 2021), businesses selling goods online to consumers across EU borders can opt to use the OSS instead of registering in every destination country. The EU-wide threshold is €10,000 in cross-border distance sales of goods or TBE (telecom, broadcasting, electronic) services; below this threshold, an EU business can simply charge its home country VAT. Once annual sales to all EU countries exceed €10,000 (net), the business must switch to charging VAT in each customer’s country. Via OSS, a company can report all EU consumer sales in a single quarterly OSS return filed in its home member state (or a chosen member state, if non-EU with an EU establishment). Romania’s VAT rules and portal accommodate OSS declarations, so foreign companies selling to Romanian consumers do not need a separate Romanian VAT registration if they use OSS. Instead, Romanian VAT due on B2C sales is remitted through the OSS system to Romania. [fonoa.com] [sovos.com]
• ~Non-Union OSS (non-EU B2C services): Non-EU companies providing digital services to EU consumers can register for the non-Union OSS in an EU country to simplify their VAT compliance. If a non-EU business has no establishment in the EU but is making electronically supplied services (see Section 17) to Romanian private customers, it can use any single EU country’s OSS portal to declare Romanian VAT on those sales, rather than obtaining a Romanian VAT number. No threshold applies to non-EU providers of such services – VAT is due on the first sale, so OSS is highly beneficial. [fonoa.com]
• ~IOSS (Import One-Stop Shop): For distance sales of low-value goods imported from outside the EU to Romanian consumers (consignments not exceeding €150 in value), suppliers or marketplaces can utilize the IOSS scheme. IOSS allows the seller to collect and remit Romanian VAT at the point of sale, so that goods can pass through customs in Romania without incurring VAT at import. Non-EU businesses can register for IOSS in one EU state and get an IOSS number to use for all EU low-value imports. Using IOSS is optional but can simplify the buying experience for customers (they pay VAT at checkout, avoiding surprise charges on delivery). If IOSS is not used, then the buyer in Romania may have to pay import VAT upon delivery, or the seller might need to register for VAT in Romania to handle the import and subsequent sale. [sovos.com]

6. VAT Grouping Rules

• Eligibility: VAT group members must be established in Romania and have close financial, economic, and organizational links. In practice, this usually means one entity directly or indirectly owns over 50% of the others, forming a group of companies under common control. All members need to use the same VAT reporting period (e.g. monthly or quarterly). [marosavat.com]
• Group Registration: Once approved by ANAF, a VAT group has a designated representative member (usually the parent or a nominated entity) responsible for certain compliance filings. Each group member retains its own VAT number and continues to issue VAT invoices as separate taxable persons. Intra-group transactions are not disregarded for VAT; unlike in some countries, supplies between Romanian VAT group members are still subject to VAT (they must invoice each other with VAT as normal). The primary benefit of grouping in Romania is cash-flow consolidation: the group can file a single consolidated VAT return through the representative member, offsetting one member’s input VAT credits against another’s output VAT liabilities. This can reduce the occurrence of VAT refunds and simplify payments. [marosavat.com]
• Liability: All members of a VAT group share joint and several liability for the group’s VAT debts and any penalties. This means the tax authority can pursue any member for the full VAT owed by the group. Companies should carefully consider this when forming a group, as a non-compliant member could expose the others to risks. [marosavat.com]
• Duration: If a VAT group is formed, it must generally remain in place for at least two years before it can be dissolved or members can leave. Any changes in group composition must be reported to the tax authorities. After leaving a VAT group, a company must wait a certain period (often a few years) before joining another VAT group. [marosavat.com]

7. VAT Recovery for Foreign Businesses

• VAT Registration and Deduction: If a foreign business is carrying out taxable activities in Romania and registers for Romanian VAT (see Section 5), it can usually recover Romanian VAT by deducting input tax on its Romanian VAT return just like a local business. This is feasible when the company is making taxable supplies in Romania (e.g. local sales, installations, events) and thus must register; input VAT on business costs related to those activities can be claimed through periodic Romanian VAT filings. [grantthornton.global]
• EU (8th Directive) VAT Refunds: If a company is established in another EU Member State and incurs Romanian VAT on business expenses (but is not required to register in Romania), it can claim a VAT refund under EU Directive 2008/9/EC (formerly the 8th Directive). Common examples include a business sending employees to Romania for meetings or conferences, incurring local VAT on hotel or travel bills, without making any taxable supplies in Romania. In such cases, the company can file an electronic VAT refund claim through its home country’s tax portal (the “EU VAT refund portal”) by 30 September of the following year, specifying the Romanian VAT to be refunded. The claim is then processed by Romania’s tax authority (ANAF), which will refund the VAT directly to the claimant if all conditions are met. To qualify, the claimant must be a taxable person in another EU country, not have a fixed establishment in Romania, and not have carried out taxable supplies in Romania (aside from very limited exceptions like certain transport services) during the period. Supporting documents (invoices, import documents) and a certificate of taxable status are required in the application. Romania generally follows the standard EU rules for 8th Directive refunds (minimum claim amounts of €400 for quarterly claims or €50 for annual claims, decision within ~4 months, etc.). [taxation-c….europa.eu]
• Non-EU (13th Directive) VAT Refunds: If a business is established outside the EU, a different mechanism (the 13th Directive, 86/560/EEC) applies for recovering Romanian VAT. Non-EU companies must submit a paper refund claim to ANAF (usually via a fiscal representative – see Section 16) and provide original invoices and certifications from their home country. Importantly, Romania applies a reciprocity condition for non-EU refunds. This means that a non-EU business is eligible for a Romanian VAT refund only if its country of establishment offers equivalent VAT refund rights to Romanian companies (i.e. there is a reciprocal agreement or declaration in place). As of 2024, for example, Romania confirmed reciprocity with the United Kingdom, allowing UK businesses to claim Romanian VAT post-Brexit. If no reciprocity agreement exists with a given non-EU country, Romanian law may bar VAT refunds to claimants from that country. Non-EU claims must typically be filed by 30 June of the year following the year of the expenses and have similar minimum amounts (e.g. RON 1,500 for annual claims) as per Romanian regulations. Non-EU businesses must appoint a Romanian fiscal representative to handle the 13th Directive refund claim (this agent is jointly liable for any issues). Section 16 of this guide provides more details on specific requirements for non-resident VAT refunds. [taxation-c….europa.eu], [taxation-c….europa.eu] [grantthornton.global] [taxation-c….europa.eu]

8. Fiscal Representative Requirements

• Non-EU Businesses – Mandatory Fiscal Rep: A company that is not established in the EU is required to appoint a Romanian fiscal representative in order to register for Romanian VAT. The fiscal representative must be a person or entity established in Romania and is subject to approval by the tax authorities. The fiscal representative acts in the name of the non-EU business for fulfilling VAT obligations – including filing VAT returns, paying VAT, and handling communications with ANAF. Importantly, the fiscal rep is jointly and severally liable for the VAT debts and compliance of the non-EU taxpayer in Romania. This means the representative can be held responsible for any unpaid VAT or penalties of the foreign business, so they will typically require bank guarantees or insurance to cover that risk. [marosavat.com] [marosavat.com], [taxation-c….europa.eu]
• EU Businesses – No Mandatory Rep: If a business is established in another EU Member State, it can register for VAT in Romania directly (without a fiscal representative) under the EU’s mutual assistance principles. Appointment of a local representative is optional for EU-based companies. Some EU businesses choose to use a Romanian tax agent or consultant to handle their VAT affairs, but it is not a legal requirement. [marosavat.com]
• 13th Directive Refunds: For non-EU companies seeking VAT refunds (without local registration), Romanian law does require a fiscal representative to file the refund claim on the company’s behalf. This is part of the 13th Directive refund process in Romania’s legislation. EU companies claiming refunds via the 8th Directive do not need a representative – they claim through their home country’s electronic portal. [taxation-c….europa.eu]

9. Currency and Foreign Exchange (FX) Rules

• Invoicing Currency: Invoices in Romania may be issued in any currency, but any VAT amount must be stated in RON. If an invoice is issued in a foreign currency (e.g. EUR or USD), the VAT should be converted to RON using the official exchange rate. Common practice (per Romanian Fiscal Code requirements) is to use the exchange rate published by the National Bank of Romania (NBR), typically the rate valid on the date of the chargeable event (or the day before the invoice date) for conversion into RON.
• VAT Returns and Payments: All amounts in the periodic VAT return (Form 300) must be reported in RON. When paying VAT liabilities, non-resident companies must also pay in RON. If a foreign business pays from an overseas bank, they must use specific bank details designated by the Romanian Treasury for VAT payments (including an IBAN that contains the taxpayer’s VAT code). [marosavat.com]
• Exchange Rate Fluctuations: If there is a discrepancy between the amount of VAT in RON declared on an invoice and what is actually paid (due to exchange rate movements between invoice date and payment date), Romanian VAT law generally does not require adjustments solely for exchange rate differences. The taxable amount is fixed in RON at the exchange rate used on the invoice/chargeable event date. However, for credit notes or adjustments, the same exchange rate as the original invoice is typically used to ensure consistency.
• Price Display: In B2C transactions (e.g., retail), prices can be displayed in other currencies, but the receipt for a cash sale (fiscal receipt) will usually show the RON amount of VAT. In B2B invoices, it is common to see the net amount in a foreign currency, with the VAT rate and the RON-equivalent VAT amount and total. Businesses dealing frequently in foreign currencies should stay updated on applicable NBR exchange rates (which are published daily).

10. VAT Law and Legal Framework

• The primary law is the Fiscal Code (Law no. 227/2015, as amended), which contains the core VAT provisions (Title VII of the Fiscal Code deals with VAT). This law came into effect on 1 January 2016, replacing the previous Fiscal Code from 2003. The Fiscal Code lays out the scope of VAT, tax rates, place of supply rules, exemptions, registration requirements, calculation of tax, reporting obligations, and penalties, largely mirroring EU Directive 2006/112/EC in structure and content.
• Detailed implementation rules are provided in the Methodological Norms for applying the Fiscal Code (government decisions that elaborate on how each article of the Fiscal Code should be interpreted in practice). These norms are updated whenever the Fiscal Code is amended.
• Romania also issues periodic Ordinances and Government Decisions to amend VAT rules in line with policy changes or EU requirements. For example, Law 141/2025 introduced the 2025 VAT rate changes (see Section 3.4), and Government Ordinance 16/2022 implemented various EU VAT changes and local adjustments. [ey.com]
• Being in the EU, EU regulations and directives have direct effect or must be transposed. The VAT Directive (Council Directive 2006/112/EC) is the foundational document. Additionally, Romania conforms to EU Implementing Regulations (which provide binding interpretation on certain VAT rules across the EU), as well as Council Regulations on administrative cooperation in VAT matters.
• Notably, Romania has incorporated the 2020 EU “Quick Fixes” (simplified rules for call-off stock, chain transactions, and proof of intra-Community supply) into its Fiscal Code and regulations. Romania also adopted the 2021 EU e-Commerce VAT package, enabling OSS and IOSS (as discussed in sections 5 and 18). [taxsummaries.pwc.com]
• Recent legislative developments: The Romanian Parliament and government frequently adjust tax laws. In late 2025, Emergency Ordinance 89/2025 was issued (the “Omnibus Ordinance”), introducing various tax changes effective 2026, such as updates to e-invoicing mandates and compliance rules. Tax laws can change with little notice, so businesses should keep an eye on official publications (Monitorul Oficial) or consult tax advisors for the latest rules.

11. Tax Authorities

• VAT Registration: Processing applications for VAT registration/deregistration of businesses (both resident and non-resident). This includes maintaining the official registry of VAT payers and the VIES database for Romanian VAT numbers.
• Tax Returns and Payments: Receiving and processing decontul de TVA (VAT returns) – Form 300 for periodic returns and other related forms (390, 394, etc. – see Section 23) – and managing VAT payments and refunds. VAT returns are filed electronically via the e-Guvernare portal or SPV (virtual private space) platform.
• Audits and Inspections: Conducting audits, on-site inspections, and VAT compliance checks. ANAF has the authority to inspect accounting records, VAT ledgers, invoices, and SAF-T submissions to verify that VAT has been correctly declared. The agency focuses on high-risk areas such as fraudulent refund claims, carousel fraud, and under-declared sales.
• Rulings and Guidance: Issuing public guidance on VAT matters (including official tax guides and Q&A on specific scenarios) and private tax rulings (binding rulings can be requested by taxpayers for complex transactions).
• Enforcement and Penalties: Imposing penalties and interest for late filings, late payments, or other non-compliance (see Section 24). ANAF can also take enforcement actions such as seizing assets or blocking bank accounts for significant VAT debts.

12. Scope of VAT

• Supply of goods or services in Romania: Any sale of goods or provision of services in Romania for consideration (payment) by a taxable person in the course of a business is within the scope of VAT. This includes all domestic transactions involving the transfer of goods or performance of services in Romania. For VAT purposes, a taxable person is anyone (individual, company, or other entity) engaged in economic activity, even a non-resident, when acting in that capacity. (Certain supplies may then be exempt or zero-rated as described in Section 3.3, but they are still within the scope of VAT.) [globalvatc…liance.com]
• Import of goods into Romania: Bringing goods into Romania from outside the EU (importation) is a taxable event. Import VAT is due at the point of import (customs clearance) unless deferred (see Section 15). The taxable amount is generally the customs value plus any duties and ancillary costs, and VAT is typically paid to Romanian Customs (or self-accounted via a deferred mechanism) to release goods from customs. [globalvatc…liance.com]
• Intra-Community Acquisition (ICA) of goods: When a Romanian business or other VAT-registered person acquires goods from another EU Member State (and those goods are shipped to Romania), an intra-Community acquisition occurs and is taxable in Romania. Typically, the Romanian purchaser must self-account for Romanian VAT under the reverse charge mechanism on its VAT return (simultaneously declaring output and input VAT, thus usually neutral if fully deductible – see Section 15). ICAs generally happen when buying goods from EU suppliers who zero-rate the sale as an intra-Community supply on their side. [globalvatc…liance.com]
• Certain intra-Community B2C purchases: While most B2C purchases by Romanian private individuals from other EU countries are subject to foreign VAT (due to the seller’s OSS or distance selling rules in many cases), there are particular scenarios where Romanian VAT must be paid – for example, a Romanian non-VAT-registered entity purchasing a new means of transport (like a new car) from another EU country pays Romanian VAT on that acquisition upon registration of the vehicle. [globalvatc…liance.com]
• Supplies treated as taxable “deemed supplies”: In some cases, the VAT law treats certain transactions as supplies even if no consideration is paid – for instance, using business assets for personal use, or free gifts of goods above a small nominal value, are deemed supplies and thus potentially taxable at market value. However, Romania’s Fiscal Code provides exceptions for some free supplies: e.g. small-value gifts for advertising (below a certain threshold per item), certain samples, or humanitarian aid from state reserves are not treated as taxable supplies. [globalvatc…liance.com]

13. Time of Supply (Tax Point) Rules

13.1 Supplies of Goods

13.2 Supplies of Services

13.3 Imports of Goods

13.4 Goods on Approval or Return Basis

14. VAT Invoicing Requirements

14.1 Invoice Issuance and Deadlines

• General deadline: An invoice should be issued no later than the 15th day of the month following the month in which the taxable supply took place. This aligns with EU rules. For example, if goods were delivered on March 5th, an invoice must be issued by April 15th. [taxation-c….europa.eu]
• Advance payments: If a payment is received before the goods or services are supplied, an invoice for that advance must also be issued by the 15th of the month following the month of payment (and as noted in Section 13, VAT on the advance is due at that time). [taxation-c….europa.eu]
• Self-billing: If a customer issues an invoice on behalf of the supplier (self-billing arrangements), Romanian law requires a prior agreement and usually the invoice must contain the phrase indicating it’s self-billed. Self-billed invoices are allowed under specific conditions (the invoice must contain all normal details plus an indication that it’s self-billing).
• Summary invoices: It is permitted to issue a summary invoice covering multiple supplies to the same customer within a calendar month, as long as it’s done by the 15th of the following month and each supply is within that month. Each individual delivery should still be supported by delivery notes or other documents at the time of delivery, which are then consolidated. [taxation-c….europa.eu]
• Electronic Fiscal Receipts: For cash sales to individuals (B2C), a fiscal cash register (see Section 20) will issue a fiscal receipt. A full VAT invoice to a consumer is only mandatory if the customer asks for it or if required by specific law (otherwise the fiscal receipt suffices). If an individual doesn’t request an invoice, businesses must still record the sale via a fiscal cash register (with a receipt) but an invoice is optional in that case. [taxation-c….europa.eu]

14.2 Required Invoice Contents

• Identifying information: A unique sequential invoice number, and the date of issue of the invoice. If the invoice date is after the supply date, the invoice should also mention the date of supply (delivery/completion) or date of advance payment receipt (if earlier than the invoice date).
• Supplier details: The name, address, and Romanian VAT registration code (CIF) of the supplier. If the supplier is not established in Romania and operates via a fiscal representative, the invoice must also state the name, address, and VAT number of the fiscal representative in Romania.
• Customer details: The name and address of the customer. If the customer is a taxable person (business) or non-EU entity, their VAT number or tax identification number should be included (for domestic B2B sales, the buyer’s Romanian VAT code; for intra-Community sales, the buyer’s EU VAT number; for exports or non-EU B2B sales, their tax ID if available).
• Description of goods/services: The quantity and nature of the goods supplied or the extent and nature of the services rendered.
• Values and VAT breakdown: The net (taxable) amount for each VAT rate being applied, the unit price (exclusive of VAT) for the goods/services, and any discounts or rebates that are not included in the unit price should be stated. The applicable VAT rate(s) (e.g. 21%, 11%, 0%) must be shown, and the corresponding VAT amount in RON for each rate must be clearly indicated. (Usually invoices will show a line-by-line breakdown and a summary of total net and VAT amounts per rate.)
• Special mentions, if applicable: The invoice should include references to any special VAT treatment relevant to the transaction, such as:
  • VAT exemption: If the supply is exempt, a reference to the applicable article of the law or EU directive granting exemption (or a phrase like “Exempt according to art. ____ Fiscal Code”).
  • Reverse charge: For domestic reverse-charge supplies (see Section 15) or intra-Community acquisitions, the invoice should state “Tax is payable by the recipient – Reverse Charge” (in Romanian, e.g., “Taxare inversă”) to indicate no VAT is charged and the buyer must self-account.
  • Margin schemes: If the supplier uses a special scheme (e.g. second-hand goods margin scheme, travel agents’ margin scheme), the invoice must include a mention such as “Margin scheme – second-hand goods” (or artwork, etc. as appropriate) instead of VAT details.
  • Cash accounting scheme: If the supplier is under the VAT cash accounting system (see Section 19) where VAT is due upon payment, their invoices should be marked “VAT on collection” (Rom: “TVA la încasare”) to inform the buyer that the supplier will account for VAT upon receiving payment.
  • Corrections or reference to past invoices: If the invoice is a correction (credit note or debit note), it should reference the original invoice number and date. Romania allows credit notes (labeled **“storno” invoices colloquially) to reduce the taxable amount/VAT in case of cancellations, returns, or discounts after the original invoice. If multiple invoices are issued for the same transaction, they should be cross-referenced.
• Language and currency: Invoices can be issued in any language, but translation into Romanian may be requested by the tax authorities during an inspection. The amounts can be in any currency, but the VAT amount must be stated in RON (with an applicable exchange rate if the sale is in foreign currency – see Section 9). [taxation-c….europa.eu]
• Electronic Invoices: Electronic invoices must contain the same information as paper invoices. Under EU rules, e-invoices are accepted provided authenticity and integrity are ensured (for instance, by using a qualified electronic signature, electronic data interchange (EDI) with controls, or the national e-invoicing system). In practice, with the introduction of RO e-Factura (see below), electronic invoices are standardized in XML format and transmitted to the tax authority’s system, which inherently guarantees their authenticity and integrity.

14.3 E-Invoicing and Digital Signature Rules

• Mandatory E-Invoicing Rollout: Initially launched for B2G (business-to-government) transactions, RO e-Factura became mandatory from July 1, 2022 for B2G invoices in Romania. Businesses selling to public institutions must issue invoices through the e-Factura system using a specific XML format (called “Factură electronică UBL 2.1”). This requirement was later expanded: [fonoa.com]
  • From January 1, 2024, all VAT-registered businesses (residents and non-residents) have been required to report B2B sales invoices within 5 working days of issuance to the e-Factura system (initially an “e-reporting” mandate). A grace period until April 2024 was granted, after which non-compliance could result in fines. [fonoa.com], [sovos.com]
  • From July 1, 2024, B2B e-invoicing became mandatory for all resident businesses for domestic transactions: Romanian-established companies must issue, transmit, and receive their B2B invoices exclusively through RO e-Factura. (Non-resident companies registered for VAT in Romania are still required only to report their invoices, not necessarily issue them via the platform, until further notice.) After July 2024, if a resident taxpayer fails to issue a standard domestic B2B invoice electronically, they are obliged to upload it to the e-Factura system within 5 days, effectively meaning e-invoicing is unavoidable. [fonoa.com] [fonoa.com], [sovos.com]
  • From January 1, 2025, the e-invoicing obligation is set to extend to B2C (business-to-consumer) invoices for resident businesses as well. This means consumer receipts/invoices will also be routed through the state system (in practice, this may initially apply to larger companies, with small businesses given until mid-2026 as an extension, per recent decisions).
• Digital Signature: To access and use the RO e-Factura system, businesses (or their software providers) need to authenticate, typically using a digital certificate (as part of the login via the Virtual Private Space – SPV). However, individual invoice digital signatures are not separately mandated as long as the invoice is issued through the official platform. Romania’s e-invoicing law aligns with EU Directive 2014/55/EU and does not require invoices to be signed or sealed if transmitted through the state system. Prior to e-Factura, electronic invoices exchanged directly between trading parties were often signed with a certified digital signature to ensure authenticity, but under the current system the government platform ensures authenticity and integrity, so additional digital signatures on the invoice PDF/XML are optional.
• Formats and Archiving: Invoices issued via RO e-Factura are generated in a structured XML format. Recipients (business customers or government entities) retrieve the invoices from the system. Taxpayers must still ensure archiving of invoices (in either electronic or paper form) for the required retention period (see Section 14.5). Romanian law typically requires keeping invoices for 10 years (and 5 years for simplified invoices/receipts), and electronic invoices must be stored in a format that guarantees readability and integrity over that period.
• Foreign Companies: As of 2024, foreign (non-resident) VAT-registered companies in Romania are subject to e-reporting of their sales and purchase invoices. Practically, this means they should transmit invoice data to the RO e-Factura system within 5 days of issuing or receiving an invoice. However, they may not be required to issue invoices via RO e-Factura in real-time until further expansion of the mandate. Non-residents should closely follow updates, as the ultimate goal is to bring all invoices into the system. [fonoa.com]

14.4 Simplified Invoices

14.5 Self-Billing

14.6 Record Keeping (Retention Period)

14.7 Invoice Corrections and Credit Notes

• A Credit Note (factură de stornare) is issued to grant a post-sale discount, to correct an overcharged amount, or to void a charge (for example, if goods are returned or an invoice was issued by mistake). The credit note references the original invoice and shows negative values for the amount and VAT being adjusted, or otherwise clearly indicates the reduction. The customer, if they already deducted VAT from the original invoice, must adjust (reduce) their input VAT claim accordingly.
• A Debit Note is used to make an additional charge (increasing the taxable amount) after the original invoice, e.g. for a surcharge or error in price. It similarly should reference the original invoice and show the extra amount and VAT.

15. Compliance and VAT Deductions

15.1 Right to Deduct Input VAT and Key Restrictions

• No deduction for non-business or private use: Input VAT on purchases not related to the taxpayer’s economic activity (e.g. goods/services intended for personal use or for non-business purposes) is not recoverable.
• Entertainment and certain goods: VAT on expenditures for alcohol, tobacco, or other personal employee benefits is generally non-deductible (unless those items are acquired for resale or provided in a taxable supply). For instance, VAT on client entertainment or staff gifts over a small value is blocked from recovery. [marosavat.com]
• Business gifts: Input VAT on gifts to customers or partners is only deductible if the gift’s value is below a threshold (RON 100 per item); beyond that, VAT on such gifts is not deductible. [marosavat.com]
• Passenger cars and vehicles: There is a partial restriction on VAT for company cars. Only 50% of the input VAT on expenditure related to passenger vehicles (vehicles under 3,500 kg and with up to 9 seats) is deductible, unless the vehicle is used exclusively for certain qualifying business purposes. The law provides full (100%) deduction only for specific cases like vehicles used solely for emergency services, security and courier services, taxi and rideshare services, driving school vehicles, vehicles rented or leased out, and vehicles used by sales or procurement agents, etc., where private use can be ruled out or is incidental. For all other company cars used for mixed purposes, half the VAT on purchase, lease, fuel, and maintenance is non-recoverable. [marosavat.com]
• Invoices from inactive taxpayers: Romania maintains a list of “inactive taxpayers” (businesses that have had their tax number suspended for compliance reasons). If you purchase goods or services from a supplier who is on the inactive list, the VAT on those invoices is not deductible while the supplier is inactive. If the supplier becomes active again and reissues compliant invoices, VAT may be reclaimed. This rule encourages buyers to transact with compliant suppliers only. [grantthornton.global]
• Anti-fraud provisions: Romanian tax law incorporates the EU principle that the right to deduct can be denied if the taxpayer knew or should have known that their transaction was connected with VAT fraud (e.g. part of a carousel fraud chain). Businesses are expected to exercise due diligence in selecting suppliers; if a supplier’s VAT fraud is apparent or known, the purchaser’s input VAT claim may be disallowed by authorities under the “knowledge test.” [grantthornton.global]
• Documentation: To deduct VAT, a taxpayer must hold a valid VAT invoice issued in compliance with Romanian requirements. Without a proper invoice (or import customs document, in the case of import VAT), input tax cannot be claimed. In certain cases like imports or self-accounted VAT, other documents (like a customs import declaration or self-invoice) are used as the evidence. [marosavat.com]

15.2 Call-Off Stock Arrangements

• The goods are shipped by an EU supplier from another Member State to Romania, to be stored there under the full control of a known Romanian business customer who will take ownership upon use.
• Both the supplier and the customer are VAT-registered and keep a special register of call-off stock movements. The supplier must report the transfer in its home country’s recapitulative statement and the customer must record it appropriately.
• The goods are actually call-off stock (i.e., intended for that customer, who will call them off at a later date) and are taken out within 12 months of arrival.
• If goods aren’t taken by the Romanian customer within 12 months, or if they are delivered to a different Romanian VAT-registered person, this triggers a normal intra-Community transaction and potentially a need for the supplier to register (unless another qualifying customer takes over under the simplification’s rules).

15.3 Reverse Charge Mechanisms (Domestic & Cross-Border)

• Cross-Border B2B Services: In line with Article 196 of the EU VAT Directive, if a non-resident provides a service to a Romanian VAT-registered business under the general B2B rule (with the place of supply in Romania because the customer is in Romania), the customer must self-account for Romanian VAT under reverse charge. The foreign supplier does not charge Romanian VAT. This applies to most B2B services (e.g. consulting, legal services, digital services provided to businesses, etc.), except certain services that have special place-of-supply rules (like land-related services, short-term hiring of transport means, passenger transport, restaurant services, admission to events, which are taxed where performed – but even in many of those cases, if the foreign supplier isn’t registered, a reverse charge can still apply under Romania’s domestic rules when the recipient is VAT-registered). [marosavat.com]
• Non-Established Supplier in Romania: If a foreign supplier (not established and not VAT-registered in Romania) sells goods or provides services with a place of supply in Romania to a Romanian VAT-registered customer, Romanian law imposes a domestic reverse charge. The Romanian customer must account for the VAT (output and input) on its VAT return, while the supplier does not charge VAT on the invoice. This is an optional provision allowed by Article 194 of the EU VAT Directive which Romania has adopted. It effectively means many B2B transactions that would normally require the foreign supplier to register for Romanian VAT can instead be handled via reverse charge. Important: This covers most goods and services, but with some exceptions. For example, if a non-established supplier installs goods in Romania (supply with installation) for a VAT-registered customer, that can fall under reverse charge. However, sales to non-taxable persons (consumers) or certain supplies like distance sales are not covered by reverse charge, hence the foreign supplier would need to register. [marosavat.com], [marosavat.com] [marosavat.com]
• Specific Domestic Reverse Charge (Anti-fraud sectors): Romanian legislation lists certain high-fraud risk goods and services where a reverse charge applies even in purely domestic transactions between Romanian VAT-registered businesses (under Article 331 of the Fiscal Code). In these cases, the supplier issues an invoice without VAT and indicates “taxare inversă” (reverse charge), and the Romanian business customer must account for the VAT. As of 2025, the domestic reverse charge applies to, inter alia: [marosavat.com], [marosavat.com]
  • Supply of scrap metal, waste and recyclable materials (ferrous and non-ferrous waste). [marosavat.com]
  • Wood materials (raw timber and wood waste). [marosavat.com]
  • Greenhouse gas emission allowances trading. [marosavat.com]
  • Certain agricultural products like cereals and technical plants (e.g. grains, oilseeds, sugar beets) when supplied in bulk. [marosavat.com]
  • Real estate and construction services: Supplies of real property (buildings, parts of buildings, land) and related construction services between VAT-payers, if those supplies are taxable. Often the reverse charge is applied for sales of buildings/land where the supplier opted to tax an otherwise exempt sale. [marosavat.com]
  • Electricity and natural gas supplied to a taxable reseller in Romania (under specific conditions). [marosavat.com]
  • Certain electronics: Temporarily (currently through 2026), supplies of specific electronic products — such as mobile phones, integrated circuit devices (chips), game consoles, tablets, and laptops — are subject to reverse charge if the invoice total for such goods exceeds RON 22,500 (approx €4,500). This measure, allowed under a special derogation, is intended to prevent VAT fraud in trading of these goods. [taxsummaries.pwc.com]
  • Investment gold: Supply of investment-grade gold can be exempt, but if a supplier opts to tax the sale of investment gold, a reverse charge mechanism applies to domestic transactions with other VAT-registered entities. [marosavat.com]

15.4 Treatment of Cash Discounts

15.5 Bad Debt Relief

• The debt must be genuinely uncollectible: typically proven by a final court decision declaring the customer bankrupt or approving a reorganization plan that writes off the debt. Other mere payment delays or non-payment (without formal insolvency) do not qualify for VAT relief. [taxation-c….europa.eu]
• The supplier must have already accounted for the VAT in a past return (i.e., the sale was taxed and reported).
• Relief is claimed by issuing a VAT credit note to adjust the taxable amount to zero (if the sale is cancelled due to bankruptcy) or to the reduced amount actually recoverable under the reorganization plan. This adjustment can only be made after the court decision is final (for bankruptcy, after the closure of insolvency proceedings; for reorganization, after the plan confirmation). [taxation-c….europa.eu]
• Bad debt relief must be claimed within the standard statute of limitations (5 years) from when the tax became chargeable. Romanian law allows the adjustment in the VAT return corresponding to the date of the qualifying event (court decision), even if that is after the standard 5-year period of the original sale, as long as the court decision occurred within that period. [taxation-c….europa.eu]

15.6 Import VAT Deferment Scheme (Postponed Accounting)

• Optional License: To use postponed accounting, a VAT-registered importer must obtain a deferred import VAT payment certificate (license) from ANAF/Customs. Not all importers automatically qualify; there are stringent conditions:
  • The business must be established and VAT-registered in Romania for at least 12 months prior to application. [marosavat.com]
  • It should have a clean tax record (no significant outstanding tax debts to the Romanian tax or customs authorities). [marosavat.com]
  • The applicant should have a proven track record as a regular importer – e.g., having imported at least RON 50 million worth of goods in the prior 6 months (indicative threshold as per regulations). [marosavat.com]
  • Alternatively, certain trusted traders like Authorized Economic Operators (AEOs) or holders of customs simplifications may be eligible even if the import volume condition isn’t met. [marosavat.com]
• Operation: Once granted the deferred import VAT accounting license, the importer can instruct Customs not to collect VAT on qualifying imports. Instead, the importer will simultaneously record output VAT and an equal input VAT deduction on its VAT return (form 300) for the period. This means no cash outflow occurs for VAT at the border – the VAT is paid and recovered on the books at the same time. [marosavat.com]
• Scope: The license typically covers all imports of goods by that importer. It is particularly beneficial for companies importing goods for resale or manufacturing, as they avoid pre-financing large VAT amounts. If an importer fails to maintain the conditions (e.g., falls behind on taxes or loses AEO status), the deferred privilege can be revoked.

15.7 VAT Warehousing

• Customs (Bonded) Warehouses: These are for goods that remain under customs control (non-EU goods under transit or storage, labeled T1 status). When goods are placed in a customs warehouse upon import, no import VAT or duties are due until the goods are removed into free circulation. Sales of goods while they remain in a customs warehouse are outside the scope of VAT (or considered as taking place outside the EU) and thus zero-rated. Once the goods exit the customs warehouse into Romania (or another member state), import VAT and duties must be paid unless a deferment scheme applies. [marosavat.com]
• VAT Warehouses (Non-Customs): These apply to certain EU-status goods (T2 goods, i.e., already in free circulation in the EU) that are included in Annex V of the VAT Directive (which lists goods like some bonded commodities, investment gold, etc.). When eligible goods are placed in a VAT warehouse (a storage facility authorized for this purpose), the movements of goods into, within, or out of the warehouse can be treated as outside the scope of VAT temporarily. Effectively, sales of the goods while inside the VAT warehouse can be done without VAT. Once the goods are removed for final sale within Romania, VAT becomes due. VAT warehouses in Romania are used for specific industries (e.g., trading of certain taxes-suspended goods, like particular excisable items or investment gold) and require authorization. [marosavat.com]

15.8 Supply-and-Install Transactions

15.9 Use-and-Enjoyment Provisions

15.10 Capital Goods Adjustment Period

• For movable capital assets (e.g. machinery, equipment, vehicles), the adjustment period is generally 5 years (beginning with the year of acquisition) in line with EU rules. If a company initially claims full input VAT on a machine but within 5 years partly uses it for VAT-exempt activities, it must adjust (repay) a portion of the VAT via its annual VAT return. Conversely, if it initially couldn’t deduct much VAT but later uses the asset more for taxable activities, it can adjust to claim more VAT back.
• For immovable property (real estate), the adjustment period is typically 20 years (as allowed by the VAT Directive) since buildings have a longer life. Any change in the use of the property (from taxable use to exempt or vice versa) within 20 years of acquisition/construction can trigger a proportional VAT adjustment.

16. VAT Recovery for Non-Residents (Refunds to Foreign Businesses)

16.1 EU Businesses – 8th Directive Refunds

• Eligibility: The claimant must not have a residence, seat, or VAT registration in Romania during the refund period, and must not have made any supplies in Romania (except certain zero-rated transport services or fully reverse-charged supplies). They must be a business (VAT-registered) in another EU country. [taxation-c….europa.eu]
• Scope of claim: The claim can cover Romanian VAT on business expenses such as travel and accommodation, trade fairs, local purchases of goods, local services, etc., that would be deductible if incurred by a Romanian taxable person. Some items like entertainment or personal cars might still be non-deductible (Romania will not refund VAT that a local would not be allowed to deduct – e.g., 50% of VAT on passenger cars, etc., see Section 15.1).
• Procedure: The EU business submits the claim via its national tax authority’s online portal by September 30 of the year following the year of purchase. For instance, VAT incurred in 2025 must be claimed by 30 Sept 2026. The claim must cover at minimum a 3-month period (or shorter if it’s the remainder of a calendar year), and the minimum claim amount is €400 (if covering < a year) or €50 (if covering a full year). Invoices above a certain amount (usually €1,000, or €250 for fuel) must be attached as scanned copies. The home tax authority will forward the claim to Romania electronically. [taxation-c….europa.eu], [taxation-c….europa.eu]
• Processing: ANAF will review the claim and should respond within about 4 months (with a possibility to request additional information, extending to 8 months). If approved, the refund is paid out to the claimant’s bank account (in any EU country) in RON or possibly in EUR. Interest is due if refunds are delayed beyond the statutory timeframe.

16.2 Non-EU Businesses – 13th Directive Refunds

• Reciprocity Requirement: Romania requires reciprocity for non-EU VAT refunds. This means Romania will only grant refunds to a business from a non-EU country if that country offers comparable VAT refund opportunities to Romanian businesses. Romania has been taking steps to formalize such reciprocity agreements or unilateral declarations. (For example, in 2024 the Romanian government approved a reciprocity agreement to allow UK businesses to claim Romanian VAT, given the UK now refunds VAT to Romanian traders post-Brexit.) If a non-EU country has no reciprocity arrangement with Romania, then Romanian VAT refunds to claimants from that country may be denied. It’s advisable to check the up-to-date list of countries with reciprocity agreements or declarations on the Romanian Ministry of Finance website. [grantthornton.global]
• Fiscal Representative: A non-EU business must appoint a Romanian fiscal representative to handle the refund claim. The fiscal rep will submit the claim to ANAF’s non-resident VAT refund office (typically by paper or possibly electronically if available) and coordinate any follow-up. [taxation-c….europa.eu]
• Procedure and Deadlines: Claims are usually filed on a special form (in Romanian) to the ANAF central tax office for non-resident refunds. The deadline is June 30 of the year following the refund year (e.g. VAT from 2025 must be claimed by 30 June 2026). The minimum claim amounts are similar to the EU claims (e.g. RON 1,500 for part-year claims, RON 200 for full-year). Original hard-copy invoices and import documents supporting the claim generally must be submitted along with the application, as well as a certificate of taxable status from the home country’s tax authority (confirming the business is registered for trading/business purposes abroad). All documentation is typically required in Romanian (with certified translations if necessary). [taxation-c….europa.eu] [taxation-c….europa.eu], [taxation-c….europa.eu]
• Processing: The Romanian tax authority aims to issue a decision on the refund within 6 months of receiving a complete application. They may request additional information within this period. If approved, refunds are paid in RON. If a claim is rejected fully or partially, ANAF will provide reasons, and the claimant can file an appeal under Romanian procedures. [taxation-c….europa.eu]

16.3 Special Cases

• Foreign Tour Operators (non-EU): Note that businesses from outside the EU providing travel services that fall under the special Tour Operator Margin Scheme (TOMS) cannot recover Romanian VAT via the refund schemes for those TOMS-related expenses, since that VAT is considered a cost under the margin scheme.
• Diplomats and International Bodies: VAT refund mechanisms also exist for foreign diplomats, consular offices, EU and NATO institutions in Romania, under separate procedures, which are beyond the scope of this guide.

17. VAT on Digital Services

• B2C Digital Services: When digital services are supplied to consumers in Romania, they are taxed at the rate of the customer’s location (Romania’s VAT rate) regardless of where the supplier is located. This comes from the EU-wide rule that B2C electronic services are taxed in the customer’s Member State. Examples of electronically supplied services (ESS) include streaming media, downloadable software, e-books, online advertising services, cloud services, etc.. If a foreign provider (EU or non-EU) sells such services to Romanian private individuals and the value of cross-border TBE services (plus any other cross-border e-services and distance sales of goods) exceeds €10,000 per year, the supplier must charge Romanian VAT on those sales. [fonoa.com]
  • Compliance Options: An EU-based digital service provider can use the One Stop Shop (OSS) Non-Union scheme (for EU businesses selling TBE services to other EU countries) to report Romanian VAT (see Section 5.3), rather than registering in Romania. A non-EU provider of digital services can use the OSS Non-Union scheme by registering in any EU Member State; otherwise, they would have to register in each EU country where they have consumers since no threshold applies to non-EU suppliers. [fonoa.com]
  • The VAT rate on B2C digital services to Romanian consumers is 21% (the standard rate) in most cases. Certain digital supplies might be exempt (e.g., education or health services, if provided under conditions that would be exempt if done domestically by a licensed entity – though this is rare for purely electronic services). [fonoa.com]
• B2B Digital Services: If digital services (e.g., cloud hosting, software subscription) are supplied B2B to Romanian businesses, the general B2B rule applies: the service is taxed where the business customer is established. Thus, a foreign provider does not charge Romanian VAT on B2B digital services; instead, the Romanian business customer must apply reverse charge and self-account for the VAT. The foreign provider may need to state on the invoice “reverse charge” and ensure the Romanian buyer’s VAT ID is recorded. [marosavat.com]
• Digital Marketplaces: Romania follows the EU “deemed supplier” rules for digital platforms facilitating B2C sales of goods or services. For example, if a non-EU business sells low-value goods (under €150) to EU customers via an online marketplace, the marketplace is deemed to be the supplier for VAT purposes in the EU, and thus responsible for collecting and remitting VAT on those sales. Similarly, platforms that facilitate digital services (apps, downloads, etc.) to consumers may also be treated as the supplier. These rules mirror EU law and ensure VAT is collected on digital economy transactions. [fonoa.com]

18. Distance Selling Rules (Goods)

• EU Distance Sales to Romania (B2C): If an EU-based seller dispatches goods from another EU country to non-VAT-registered customers in Romania (e.g., online retail to Romanian private individuals), those sales are subject to Romanian VAT once the seller’s total cross-border B2C sales exceed €10,000 per year (this threshold covers all EU distance sales and TBE services combined). Below €10,000, the seller can opt to treat foreign EU sales as supplied from its home country (charging home VAT), but above that, the seller must charge VAT of the destination country. [fonoa.com]
  Prior to 2021, Romania’s specific distance selling threshold was RON 118,000 (around €30,000). This no longer applies; the EU-wide €10,000 threshold now governs.
  Compliance: Sellers have two choices once they surpass the threshold for EU-wide distance sales in a year:
  • Register for Romanian VAT and start charging Romanian VAT on sales to Romanian customers (issuing invoices with Romanian VAT and filing Romanian VAT returns), OR
  • Use the One Stop Shop (OSS). Under the OSS “Union scheme”, an EU seller can keep a single VAT registration in its home country and declare Romanian VAT (and other countries’ VAT) through quarterly OSS returns, paying the tax to its own tax authority which then forwards it to Romania. This greatly simplifies compliance, as it avoids multiple registrations. [fonoa.com]
  Most EU e-commerce businesses opt for OSS. If OSS is used, the consumer purchases can be made with Romanian VAT charged, but the consumer doesn’t see any difference – only the back-end reporting changes. If the seller chooses not to use OSS, then a Romanian VAT registration is obligatory once sales to Romania exceed €10,000 (or even before, if the seller prefers).
• Non-EU Distance Sales to Romania: When a non-EU seller ships goods from outside the EU directly to Romanian consumers, the transactions are technically imports by the customer, and import VAT and customs duties (if any) apply at the border. However, under the new EU system, if the goods are in consignments not exceeding €150, the seller can register for the Import One Stop Shop (IOSS) to handle the VAT (charging it at the point of sale) and simplify customs clearance (the goods then enter Romania with VAT prepaid). If IOSS is not used, then the buyer in Romania will likely have to pay import VAT and duties upon delivery, which can be a disincentive. For consignments above €150, IOSS cannot be used – normal import VAT and any duties apply, and if the seller acts as the importer (or if it holds stock in the EU), a regular VAT registration is required. [sovos.com]
• Domestic Distance Sales: If a company within Romania sells goods online to Romanian consumers, it simply charges Romanian VAT as usual (no special regime, since VAT is already Romanian).

19. Cash Accounting Scheme

• Eligibility Threshold: The scheme is available to VAT-registered businesses with an annual turnover not exceeding RON 4,500,000 in the previous calendar year. This threshold has been updated in recent years (it was previously RON 2,250,000). Businesses must monitor their turnover; if they exceed RON 4.5 million, they become ineligible in the following period. [vatupdate.com]
• Opt-in Basis: Participation is optional. Qualifying businesses must formally opt into the cash accounting scheme (by notifying ANAF, usually via the 097 form). New VAT registrants under the threshold can opt in at the time of registration or at the beginning of any tax period. Once you opt in, you generally must continue using the scheme until the end of the calendar year, unless your turnover exceeds the threshold (in which case you must leave the scheme starting from the next taxable period after threshold exceedance). [vatupdate.com]
• Mechanics: If using cash accounting, when you issue an invoice to customers, you do not immediately owe VAT on that invoice until you receive payment. Instead, the VAT is “parked” until payment is collected (either partially or in full). When you receive a payment from your customer, you include the corresponding VAT in your VAT return for that period. On the purchase side, if you buy from another cash-accounting supplier, you can only deduct VAT when you actually pay that supplier. (If you buy from a normal supplier not using cash accounting, your input VAT works as usual on invoice receipt; the cash accounting restriction applies only on the supplier side.) [taxation-c….europa.eu]
• Invoice Marking: While under CAS, you must mark all outgoing invoices with “TVA la încasare” (VAT on collection) to inform customers that you are using cash accounting. Customers who are VAT-registered need to be aware: if they wish to deduct VAT on an invoice from a cash-accounting supplier, they can only do so after they have paid that supplier.
• Exclusions: The scheme cannot be applied to certain transactions, such as those where the supplier issues post-dated checks or bills of exchange, or for supplies where the customer is a public institution (some of these have special rules). Also, businesses on CAS still must pay VAT on any invoice remaining unpaid after a certain time (e.g., 12 months from issue) to prevent indefinite deferral (this aligns with EU rules allowing a maximum delay).
• Forced Exit: If a CAS participant’s turnover exceeds RON 4.5 million during the year, the scheme will cease to apply starting from the next tax period after the threshold breach. The business will be moved to normal VAT accounting and must account for any outstanding VAT on open invoices. [vatupdate.com]

20. VAT-Registered Cash Tills (Point-of-Sale Requirements)

• Mandatory Use of Fiscal Cash Registers: Virtually all businesses that make sales to the public for cash or card payment are obliged to use an approved electronic fiscal cash register (casa de marcat fiscală). This requirement comes from OUG 28/1999 and its amendments. Each cash register must have an assigned fiscal identification code and memory that securely records each transaction.
• Connection to Tax Authority Systems: Since 2021, Romania has implemented an online connection of cash registers to the tax authorities. ANAF Order no. 435/2021 established the procedure and deadlines for connecting all cash registers to the national fiscal data monitoring system. Large taxpayers were required to connect their cash registers by June 30, 2021, and small/medium taxpayers by November 30, 2021. Newly purchased cash registers after Dec 1, 2021 must be connected upon installation. Once connected, each transaction is reported in real-time (or near real-time) to ANAF’s central system. This allows the tax authority to monitor sales data to combat tax evasion (particularly under-reporting of cash sales). [bdo.ro], [bdo.ro] [bdo.ro]
• Receipts and Invoices: Businesses must issue a fiscal receipt from the cash register for every cash sale to an individual customer. If the customer is a business and requests a VAT invoice, the seller must issue a proper VAT invoice in addition to the receipt. The fiscal receipt should contain basic details of the sale (date, time, seller identification, items, total price, and VAT breakdown) and serves as a tax document. Non-compliance (failing to issue a receipt) can result in penalties and even business closure for repeat offenses.
• Point-of-Sale (POS) Terminals: Separately, as of January 2026, virtually all retailers and service providers above a minimal size are required to offer electronic payment (card) facilities by law. This is to ensure consumers can pay by card. While not directly a VAT rule, it complements the drive to reduce cash transactions (since card payments are easier to track for tax purposes).
• Periodical Declarations: Businesses using fiscal cash registers must periodically upload or transmit the stored sales data to ANAF (this is done automatically for those online). If operating in an area without internet connectivity, special declarations (per Annex 2 of Order 435/2021) must be filed to report sales data from the cash registers manually at set intervals, until connectivity is available. [bdo.ro]

21. Statute of Limitations

• In cases of fraud or tax evasion, the limitation period is extended to 10 years. If the tax authorities suspect serious fraud, they may go back up to a decade to reassess VAT liabilities. This longer period aligns with allowances in Romanian General Tax Procedure law for intentional tax evasion. [marosavat.com]

22. VAT Return Filing

22.1 Filing Frequency

• Monthly Filing: This is required if the taxable person’s annual turnover in the previous year exceeded EUR 100,000 (approx. RON 500,000) or if the business performed any intra-Community acquisitions (ICA) of goods in the previous year. Also, newly registered taxpayers are generally set on monthly filing initially. [marosavat.com]
• Quarterly Filing: Allowed if the previous year’s turnover was under EUR 100,000 and no ICAs were made in the previous year. Taxpayers eligible for quarterly filing must notify ANAF of their choice (via form 094) and confirm that they stayed below the threshold each year to continue on the quarterly regime. If at any point the conditions cease to be met (e.g. turnover grows beyond €100k or an intra-Community acquisition occurs), the taxpayer must switch to monthly filing from the next fiscal period and inform the tax office of the change. [marosavat.com]

22.2 Filing Method

22.3 Deadlines for Filing and Payment

• A January monthly return is due by February 25, and any VAT owed for January must also be paid by February 25.
• A Q1 (first quarter) return for a quarterly filer is due by April 25, with payment due the same day.

22.4 VAT Payment Methods

22.5 Handling VAT Credits and Refunds

• Carry Forward the Credit: The default is that any excess credit is carried forward to offset future VAT liabilities. The credit can be used in subsequent return periods to reduce or eliminate the VAT payment due.
• Request a Refund: If the credit is above a certain threshold (currently RON 5,000), the taxpayer may opt to request a cash refund from the tax authorities instead of carrying it forward. The VAT return (Form 300) includes a box where the taxpayer indicates a refund request. ANAF will typically perform a risk analysis or even an audit before granting the refund. If the company has any outstanding tax debts, the credit may be offset against those first. For compliant taxpayers, VAT refunds are generally processed within 45 days, but if an audit is initiated, the timeframe can extend to 3-6 months or more. Interest is payable by the state on delayed refunds beyond the legal timeline. [marosavat.com]

22.6 Correcting Errors in VAT Returns

• In-period adjustments: Minor corrections can sometimes be made in the next VAT return. For instance, if a small invoice was accidentally not reported, it can be included in the following period’s figures with an appropriate note, as long as it’s within the same calendar year.
• Official Amendment (Rectifying Return): To formally correct a filed return, a rectifying return (essentially, submitting Form 300 again for that period, indicating it is a correction) can be filed within the 5-year limitation period. Any additional VAT due should be paid with associated late payment interest. If the correction decreases the VAT due (increases a refund), the taxpayer can claim the additional credit.
• Material Errors Procedure: Romanian tax law outlines a procedure for correcting material errors in VAT returns beyond simply adjusting a subsequent return. The taxpayer must file a formal request to the tax office to correct the error, providing supporting documentation. The tax authority may review the request and issue a decision to rectify the tax position. If the correction leads to higher VAT due, typically late payment charges will apply on the difference until payment is made. [marosavat.com]

22.7 Non-Resident Filing Specifics

• They use the same Form 300 for returns (marked as non-resident where applicable).
• Returns are generally filed monthly (since they usually perform cross-border transactions).
• They must file any necessary listings (Recapitulative Statement, etc.) if applicable to their transactions.
• They must keep records in line with Romanian requirements and may have to provide information in Romanian upon request.
• There are no simplified return schemes for non-resident businesses (aside from the OSS/IOSS which are alternative systems). Romania does not offer a separate regime for occasional non-resident traders beyond what EU law provides; non-residents either register and file normally or use OSS/IOSS if eligible. [fonoa.com]

23. Other Filings (EC Sales List, Intrastat, Annual Returns, SAF-T, etc.)

23.1 EC Sales List (Recap Statement – Form 390)

23.2 Domestic Sales and Purchase List (Form 394)

23.3 Intrastat Declarations

23.4 Annual Returns

23.5 SAF-T (Standard Audit File for Tax)

• Large taxpayers: Required to submit SAF-T reports (D406) on a monthly basis starting 1 January 2022. Some financial institutions were given until 2023 due to complexity. [taxsummaries.pwc.com]
• Medium-sized taxpayers: Required to comply from 2023. [taxsummaries.pwc.com]
• Small taxpayers: Not yet in mandatory scope until 2025 or later. According to current rules, small taxpayers and non-resident VAT-registered entities will be required to submit SAF-T from 1 January 2025. [taxsummaries.pwc.com]
• Content: The SAF-T (D406) includes detailed information on company’s general ledger, customers, suppliers, products, tax codes, and transaction details. Romania has specific schemas, including appendices for Stocks (inventory movements) and Assets.
• Filing frequency: Generally monthly for those who file monthly VAT returns, though some sub-reports (like certain asset reports) can be less frequent. The SAF-T file is due by the end of the month following the reporting period (or by the deadline for annual financial statements, in the case of the annual asset report). [sovos.com]

23.6 Other Reporting

24. Penalties and Interest

• Late Filing of VAT Return: Failing to submit a VAT return by the deadline (25th of the month following the period) can result in a fixed fine. For large and medium taxpayers, the fine ranges from RON 1,000 to RON 5,000; for small taxpayers, from RON 500 to RON 1,000. Each late or missing return can trigger such a fine. Persistent non-filing can also lead to the tax authorities estimating the tax due, and possibly more severe sanctions. [marosavat.com]
• Late Payment of VAT: If VAT is paid late (even if the return was filed on time), daily interest and penalties accrue. The interest on late payments is 0.02% of the outstanding VAT per day (approximately 7.3% annualized). In addition, a late payment penalty of 0.01% per day is charged. These charges accumulate from the due date until the tax is paid. They may seem small daily percentages, but over a full year the interest alone is about 7.3% of the tax, and combined with the penalty it’s roughly 10.95% per annum if a payment is a year late. [marosavat.com]
• Errors and Understatements: If a filed VAT return is found to understate the true VAT due (e.g., through a mistake or omission), the tax authority can assess the additional VAT plus apply a penalty for incorrect declaration. A common penalty is 0.08% per day of the underpaid VAT for inaccuracies or non-compliance discovered (this is essentially an additional interest-like penalty). This 0.08% per day can be doubled (100% increase) in cases of tax fraud or intentional evasion. These percentage-based penalties are on top of the base 0.02% interest. [fonoa.com]
• Failure to Use E-invoicing or E-reporting: Starting in 2024, not complying with e-invoice requirements can lead to fines. Romania has set fines roughly between RON 1,000 and RON 10,000 for not using the RO e-Factura system or missing the 5-day reporting window for invoices. However, authorities initially offered a grace period (no fines until spring 2024) to allow businesses to adapt. [fonoa.com] [sovos.com]
• Other penalties: Various other VAT-related infractions carry penalties. For example, failing to issue an invoice or fiscal receipt to a customer can lead to fines and potentially business suspension for repeat offenses. Not displaying prices with VAT to consumers is also a regulatory offense. Using an unregistered or unconnected cash register can result in penalties. Engaging in activities without registering for VAT when required can trigger fines of RON 500–5,000 (depending on business size) and back-dated tax plus interest. [marosavat.com]
• Criminal consequences: In cases of severe VAT fraud (such as intentional tax evasion, fraudulent VAT refund claims, or carousel fraud), criminal charges can be brought under Romanian law. Convictions can result in significant fines and even imprisonment for responsible individuals, depending on the magnitude and nature of the fraud.

25. Other Notable VAT Features

• Special VAT Schemes: In addition to the cash accounting scheme (Section 19) and small business exemption (Section 5.1), Romania applies other special schemes aligned with EU law:
  • The special scheme for farmers (a flat-rate compensation for unregistered agricultural producers, instead of regular VAT – farmers under this scheme do not charge VAT but can add a flat-rate percentage to their prices to recover input VAT indirectly).
  • The Tour Operators Margin Scheme (TOMS) for travel agencies (they pay VAT only on their margin on travel packages).
  • The Second-Hand Goods Margin Scheme for used goods, works of art, collector’s items, and antiques (VAT applies to the resellers’ profit margin).
  • The Special scheme for investment gold, allowing gold trading to be exempt or taxed at the option of the supplier.
  • Electronic OSS/IOSS regimes for digital services and distance sales (as discussed in Sections 5 and 18). These schemes are set out in Chapter XII of the Fiscal Code and generally mirror EU directive provisions, offering simplifications or special VAT calculation methods for specific industries. [marosavat.com]
• VAT and Inactive Taxpayers: Romania maintains a Register of Inactive Taxpayers (companies that fail to file returns or breaches obligations can be declared inactive by ANAF). Engaging in transactions with an inactive VAT payer has consequences: as mentioned, input VAT can’t be deducted on purchases from an inactive supplier, and such suppliers are not allowed to issue VAT invoices during inactivity. Businesses should check the status of new Romanian partners via the ANAF online database of inactive taxpayers to avoid VAT issues. [grantthornton.global]
• Joint Liability for VAT in fraud cases: Romanian legislation can enforce that a buyer becomes jointly liable for unpaid VAT if it is proven that the buyer was aware (or should have been aware) of the seller’s intention to evade VAT. This is applied in serious fraud scenarios and is in line with EU case law. It reinforces the need for due diligence in supply chains (e.g., verifying VAT numbers, keeping proof of transport for zero-rated sales, etc.).
• Split Payment Mechanism: Romania briefly operated a “VAT Split Payment” system (2018–2019) where certain businesses had to maintain separate accounts for VAT and customers would pay the VAT amount directly into a blocked VAT account. However, this mandatory split VAT mechanism was abolished after the European Commission objected to it. Romania no longer requires a generalized split payment, although voluntary use of such accounts is allowed and in some cases certain high-risk taxpayers might still be monitored via special accounts. As of 2026, the split payment system is not in widespread use.
• Taxable Person Definition: Romania follows the EU concept of taxable person. However, note that public authorities and entities that perform sovereign activities are generally not taxable persons for those government activities, unless they compete with businesses. If a public institution engages in economic activities (like selling goods or services for a fee), it may be considered a taxable person for those activities. Some public activities (e.g., public postal services, betting, public education) are exempt as mentioned.
• Vouchers: Romania has implemented the EU rules distinguishing single-purpose vouchers (SPVs) and multi-purpose vouchers (MPVs). An SPV (where the place of supply and VAT rate are known at issuance) is treated as a supply at the time of sale of the voucher (VAT is accounted then). An MPV is only taxed when it’s redeemed. Businesses issuing gift cards or vouchers must ascertain the correct VAT treatment per these definitions.
• Fiscal Unity for VAT vs. Corporate Groups: As discussed in Section 6, Romania’s VAT grouping does not ignore intra-group supplies. Therefore, unlike some countries, Romania does not give consolidated groups an advantage of VAT-free internal flows – it only consolidates payment. Corporate groups should plan for cash-flow on intercompany transactions accordingly.
• Emerging Digital Compliance: Romania’s approach to VAT is becoming highly digitized. With e-Factura and SAF-T, tax data is increasingly reported in real-time or near-real-time. The government is also exploring an “e-Transport” system (RO e-Transport) to monitor movements of goods prone to fraud. Since July 2022, certain high-risk products (like vegetables, alcohol, tobacco, mineral oil, etc.) moved within Romania must be declared in the RO e-Transport system to generate an ITU code for transport. While not strictly a “VAT” requirement, it relates to controlling goods for VAT purposes.
• Corrections and Amendments: Romania allows corrections to VAT reporting, but also emphasizes compliance. Taxpayers have a chance to correct errors, but once an audit starts, the ability to make voluntary corrections is limited. It’s always better to amend returns proactively rather than wait for an audit.
• Pricing Display: In Romania, prices for goods and services must be displayed inclusive of VAT when addressed to the general public (B2C situations). This consumer protection rule ensures transparency in pricing.
• Incentives and exemptions: Romania occasionally offers VAT incentives in specific cases. For example, EU-funded projects may be allowed VAT exemptions (with subsequent government reimbursement to the state) to avoid EU funds being used for VAT. Also, certain industries (like ship and aircraft building, or investments in Free Zones) enjoy special VAT suspensions or exemptions under specific conditions.