- Increase in VAT Exemption Threshold: As of September 1, 2025, the annual turnover threshold for VAT exemption in Romania has increased from RON 300,000 to RON 395,000, allowing small enterprises below this new threshold to benefit from a special VAT exemption scheme, which includes not collecting VAT on goods and services but also not being able to deduct VAT on purchases.
- New VAT Registration Obligations: The Government Ordinance no. 22/2025 requires entities exceeding the new VAT exemption threshold to adjust their tax status by September 30, 2025. Failure to register by this deadline may lead to ongoing VAT obligations and potential fines, along with the possibility of retroactive VAT payments for transactions conducted before registration.
- Deregistration Conditions and European Context: Companies that registered for VAT under the old threshold may request deregistration if their turnover remains below the new threshold. These changes are part of Romania’s efforts to align with EU Directive 2020/285, aiming to harmonize VAT rules for small enterprises, reduce administrative burdens, and create a more flexible legislative framework.
New VAT Exemption Rules for EU Companies Operating in Romania Effective November 2025
- As of November 20, 2025, a new VAT exemption procedure applies to EU companies operating in Romania, regulating a special scheme for small enterprises.
- The exemption is available only if the company’s total EU turnover does not exceed EUR 100,000 and the Romanian national threshold of RON 395,000 is not surpassed.
- Applications are managed by the Tax Administration for Non-Resident Taxpayers in Bucharest, with notifications and compliance checks coordinated electronically.
- Exceeding thresholds, failing to report, or not meeting legal conditions results in loss or rejection of the exemption and possible mandatory VAT registration.
- Quarterly reporting is required, and the exemption can end due to threshold breaches, voluntary withdrawal, cessation of activity, or non-compliance.
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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