VAT Guide for Businesses with Customers in Romania

VAT Rates in Romania

The standard Value Added Tax (”Taxa pe valoarea adaugata” (TVA)) rate in Romania is 19%, with some services exempt from Romanian VAT, such as certain banking and financial operations, medical services, the educational activity carried out by public institutions or other authorized entities, and public postal services.

VAT Registration Thresholds in Romania

• VAT registration threshold for domestic established sellers: RON 300,000 (EUR 88,500) turnover a year Taxable persons with a business establishment in Romania may opt to register for VAT even if they do not exceed the mandatory threshold if they are importing goods or supplying or renting VATable real estate.
• VAT registration threshold for non-established sellers: Non-established businesses should be required to register for VAT without threshold limitations if they carry out specific activities, such as Intra-Community acquisition of goods, Intra-Community supplies of goods, or export of goods.
• VAT registration threshold for intra-EU distance selling of goods and B2C telecommunications, broadcasting & electronic services (TBE): EUR 10,000 (net) per calendar year
• VAT registration threshold for non-resident, non-EU based suppliers of Electronically Supplied Services (ESS): No registration threshold

Romanian VAT Number Format

• For individuals, the Personal Identification Number (CNP) consists of 13 digits.
• For businesses, the tax identification number consists of a single block of 2 to 10 digits. This tax number is referred to as the CIF, which is the abbreviation of “Codul de Identificare Fiscală.”

• For individualsFormat: 9999999999999
• For businessesFormat: 99[99999999]

Romania VAT ID Validation

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VAT on Electronically Supplied Services (ESS) in Romania

Digital Services in the European Union (EU) are often referred to as electronically supplied services (ESS). Romania applies the harmonized EU VAT rules for ESS.

• For B2B supplies of such services, the general place of supply rule for services has to be taken into consideration.
• For B2C supplies, the EU ESS rules will apply to foreign companies selling to Romanian consumers (B2C).

Under the EU’s B2C ESS rules, until the sales value reaches EUR 10,000 (including distance sales of goods), the seller can charge VAT where it is resident. Once the sales exceed the threshold, the seller should register for VAT in Romania, or it can choose to account for the VAT under the EU’s One Stop Shop (OSS) regime.

VAT Rate: 19% VAT is typically applied to the sale of affected Electronically Supplied Services.

Will your business need to pay VAT on digital services in Romania in 2024?

Learn More About VAT on Digital Services in Romania

Marketplace & Platform Operator Rules in Romania

Romania applies the harmonized European Union’s (EU) VAT rules for marketplace & platform operators.

Supply of goods

A marketplace is deemed to have received and supplied the goods themselves. This transaction is split into two supplies:

• A supply from the underlying supplier to the marketplace (deemed B2B supply)
• A supply from the marketplace to the final customer (deemed B2C supply).

This rule covers the following:

• Distance sales of goods imported to the EU with a value not exceeding EUR 150
• Supplies of goods to customers in the EU, irrespective of their value, when the underlying supplier is not established in the EU (both domestic supplies and distance sales within the EU are covered).

Supply of services

When electronically supplied services are sold through an intermediary, e.g. a marketplace for applications, the intermediary is deemed to have received and supplied the services themselves. Therefore, the VAT liability shifts to the intermediary from the underlying supplier.

Invoice Requirements in Romania

The invoice should include the following information:

• Document & general transaction information
  • Invoice sequential number
  • Invoice issue date
  • Delivery date or the date of receipt of an advance payment if this date is prior to the invoice issue date
• Supplier information
  • The name, address, and registration code for VAT purposes or the tax ID number of the taxable person who delivered the goods or provided the services
• Customer information
  • The name and address of the beneficiary of the goods or services, as well as the VAT registration code or the tax ID number of the beneficiary if he is a taxable person or a non-taxable legal entity
• Financial transaction information
  • The name and quantity of the goods delivered, the name of the services provided
  • The taxable amount per rate or exemption, or non-taxable operation, the unit price exclusive of VAT, and any discounts or rebates if they are not included in the unit price
  • VAT rate and VAT amount expressed in RON.
• Additional information that may be required:
  • Reference to self-billing
  • Reference to VAT exemption
  • Reference to reverse charge mechanism
  • Reference to Margin scheme — Travel agents
  • Reference to Margin scheme — Works of art or Margin scheme — Collector’s items and antiques
  • If VAT is payable on the date of receipt of the total or partial consideration for the delivery of goods or the provision of services, the mention "VAT on receipt"
  • Reference to other previously issued invoices or documents when several invoices or documents are issued for the same operation
  • The name of the supplier who is not established in Romania and who has appointed a fiscal representative, as well as the name, address, and registration code for VAT purposes of the fiscal representative
  • The name of the beneficiary who is not established in Romania and who has appointed a fiscal representative, as well as the name, address, and registration code of the fiscal representative.

Simplified VAT invoices are allowed in Romania if the gross value of the supplies is not higher than EUR 100.

E-Invoicing & Digital Reporting for Romania

B2G e-invoicing and B2B e-invoicing for high fiscal risk products became mandatory on July 1, 2022, in Romania.

From January 1, 2024, all resident and non-resident businesses are required to report their invoices within 5 working days of issuance.

From June 1, 2024, fines ranging from 1000 LEI to 10000 LEI (approximately EUR 200 to EUR 2000) will be applied for non-compliance.

From July 1, 2024, resident businesses must issue, transmit, and receive invoices exclusively through the RO E-Factura system. Non-resident VAT registered businesses continue to be subject to e-reporting requirements.

From January 1, 2025, e-invoicing will extend to B2C transactions for resident businesses.

Romania began SAF-T implementation in 2022 and continues to phase in taxpayers through 2025.

Learn more about E-Invoicing and Digital Reporting in Romania

Governmental Body Responsible for E-invoicing and Digital Reporting in in Romania

The governmental body responsible for e-invoicing in Romania is the National Agency of Fiscal Administration (”Agentia Nationala de Administrare Fiscala” - ANAF). ANAF maintains a dedicated website for e-invoicing purposes called RO e-Factura.

VAT Payments and Returns in Romania

Full VAT Returns

Romania does not provide simplified VAT returns for VAT-registered non-resident taxpayers supplying electronically supplied services. Instead, they can avoid VAT registration in Romania and use the EU One-Stop Shop (OSS) return.

Penalties in case of late filings or misdeclarations

In the case of the late filing of VAT returns and payments, the Romanian Tax Authority should enforce the following penalties:

• Late payment of VAT:
  • Late payment interest (0.02% per day of delay)
  • Late payment penalties (0.01% per day of delay) apply
• For late filing of VAT returns, a penalty between RON 1,000 – RON 5,000 could be imposed
• For non-compliant or inaccurate reporting, a penalty of 0.08% per day of delay applies
• For fraudulent actions, a penalty of 0.08% per day of delay penalty is increased by 100%