Summary
-
Romania’s Law No. 170/2026 introduces procedures allowing specified direct VAT exemptions to apply retrospectively where the authenticated exemption certificate was unavailable on the supply date. The measure concerns qualifying supplies to diplomatic and consular missions, international organizations, EU defence forces and NATO forces. [infodosar.ro], [legislatie.just.ro]
-
If the certificate is obtained within the statutory limitation period, the exemption may apply from the taxable-event date. Where an audit occurs before the certificate is available, VAT may initially be assessed, but subsequent receipt of the certificate can permit regularization and potentially a re-examination by the tax authority. [infodosar.ro], [legislatie.just.ro]
-
Suppliers should retain evidence of customer eligibility, certificate applications and authentication dates. Although the amendment provides procedural flexibility, it does not remove the certificate condition. Invoice corrections, VAT-return adjustments and customer reimbursements should be managed through a documented process, particularly where an assessment has already been issued.
Click on the logo to visit the website
Article
Romania has enacted Law No. 170/2026, introducing a more flexible procedure for applying certain direct VAT exemptions based on authenticated exemption certificates. The law was published in Official Gazette No. 648 of 5 August 2026 and entered into force on 8 August 2026. [infodosar.ro], [legislatie.just.ro]
The affected exemptions concern specified supplies to eligible persons and bodies established in Romania. These include diplomatic missions and consular offices, qualifying diplomatic and consular personnel, recognized international organizations, armed forces of other EU Member States participating in EU defence activities, and NATO forces engaged in common defence operations.
Under the revised article 294 of the Romanian Fiscal Code, suppliers generally apply the direct exemption by invoicing without VAT on the basis of an exemption certificate. The new provision addresses cases in which the supplier does not hold an authenticated certificate at the time of supply.
Where the certificate is received later but within the applicable limitation period, the supplier may apply the exemption retrospectively from the date of the taxable event. The same principle applies where the supplier held a certificate that was authenticated only after the supply.
The position is more complex if a tax inspection takes place before the documentation becomes available. In that case, the tax inspectors may require the supplier to account for VAT from the taxable-event date. If the authenticated certificate is subsequently obtained within the limitation period, the supplier may regularize the VAT treatment. The competent tax authority will then determine whether a re-examination is appropriate. [legislatie.just.ro]
The amendment reduces the risk that timing difficulties in the certification process permanently prevent an otherwise valid exemption. However, it may create operational questions concerning corrective invoices, reimbursement of VAT to customers and the VAT-return periods in which adjustments should be reported.
Businesses supplying eligible organizations should establish a certificate-tracking procedure covering requested, received and authenticated dates. Contracts should also address the provisional treatment of VAT where documentation is pending and the mechanism for subsequent corrections.
Source Links
Latest Posts in "Romania"
- Romania Expands Digital Tax Controls with Videoconferencing and Bodycams
- Reduced 9% VAT for Homes Extended Until 30 September 2026
- New ECJ VAT Case – C-978/26 (Rompetrol Rafinare) – No details known yet
- European Commission Proposes Extending Romania’s 50% VAT Deduction Limit for Mixed-Use Vehicles
- EU Extends Romania’s VAT Deduction Limit for Motor Vehicles Until 2029
