Draft Ordinance to Implement EU Small Business Scheme for X-Border Supplies Including Increased VAT Registration Threshold

• Draft Ordinance for EU Compliance: Romania’s Ministry of Finance has published a Draft Ordinance to amend Law No. 227/2015, implementing the EU small business scheme for cross-border supplies, allowing businesses with an annual turnover under EUR 100,000 to apply for VAT registration exemptions.
• Increased VAT Registration Threshold: The ordinance raises Romania’s VAT registration threshold from RON 300,000 to RON 395,000, applicable to both Romanian businesses and those from other EU Member States seeking exemptions under the new scheme.
• Implementation Timeline: The new measures are set to take effect on September 1, 2025, with transitional provisions allowing businesses that exceeded the old threshold in August 2025 to register by September 10, 2025, and an option to deregister if they remain below the new threshold thereafter.

Source Orbitax

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Romania Increases VAT Exemption Threshold for Small Businesses to 395,000 Lei

• The Romanian Ministry of Finance announced changes to the Fiscal Code affecting small businesses.
• The VAT exemption threshold will increase from 300,000 lei to 395,000 lei starting September 1, 2025.
• This change aligns with EU Directive 2020/285 to harmonize taxation and simplify obligations for SMEs.
• Small businesses with turnover below 395,000 lei can benefit from special VAT regimes in other EU states.
• Businesses exceeding the previous threshold in August 2025 do not need to register for VAT unless they exceed the new threshold.
• Businesses established before 2025 can opt out of the VAT system if they meet certain conditions.
• The process for VAT registration and deregistration is simplified.

Source: mfinante.gov.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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