Romania VAT Tax — Rates, Registration and Compliance

How Romania VAT works

Romania VAT tax applies to most goods and services sold in the country. The standard Romania VAT rate is 21% for most taxable supplies. Two reduced rates also apply to selected goods and services.

VAT is charged at each stage of the supply chain. A registered business adds VAT to its sales. It can then deduct eligible VAT paid on business costs. The difference goes to the tax authority.

Romanian VAT rules also cover imports, EU trade, and services from foreign suppliers. The right treatment depends on the customer, place of supply, and goods involved. Keep clear records for each taxable transaction.

Romania’s main VAT authority is ANAF. Businesses should also track EU VAT rules when they trade across borders. The European Commission’s VAT rates overview lists the rates reported by EU member states.

Romania VAT rates: standard and reduced bands

The standard VAT rate in Romania is 21%. It covers most products and services that do not qualify for a special rate. For example, many professional services, household goods, and business supplies use this rate.

A reduced rate of 11% applies to listed goods and services. Food, books, and accommodation can fall within reduced-rate rules. The exact category matters, since not every related product qualifies.

A second reduced rate of 9% applies to certain specific items. These items depend on the current law and its detailed schedules. A business should confirm the rate before issuing an invoice.

Some supplies may be exempt rather than zero-rated. Exempt sales normally do not include VAT. They can also limit the seller’s right to reclaim input VAT.

Use this quick table as a starting point:

VAT rate	Common scope	Key caution
21%	Most taxable goods and services	Default rate when no special rule applies
11%	Selected food, books, and accommodation supplies	Check each legal category
9%	Other listed goods and services	Eligibility depends on the supply
Exempt	Limited supplies named in law	Input VAT recovery may be restricted

Rates can change after a law update. Check the invoice date and the supply date. Do not rely on an old product list.

When Romania VAT registration becomes mandatory

Romania VAT registration is mandatory when taxable turnover exceeds RON 395,000. This threshold applies to businesses established in Romania. Turnover must be tracked closely throughout the relevant period.

Registration brings several duties. The business must charge the right VAT rate on taxable sales. It must also keep invoices, purchase records, and proof for deductions.

Foreign companies face a different rule. They must register when they make taxable transactions in Romania, even below the turnover threshold. This can apply before the first local sale.

Some foreign businesses may use a Romanian tax representative. Others may register directly, depending on their status and transaction type. EU and non-EU businesses can face different filing steps.

Review registration before starting local activity. This matters for stock held in Romania, local services, and certain business-to-business sales. Late registration can create unpaid VAT and penalty risk.

A basic registration review should cover:

• Where the business is established
• Whether the sale is taxable in Romania
• Expected turnover and the RON 395,000 threshold
• Whether a reverse charge rule applies
• Whether a tax representative is needed

The EU’s VAT registration guidance for businesses explains wider EU registration principles. Romanian rules still decide local filing details.

Romanian VAT compliance and return filing

Romanian VAT compliance starts with accurate invoices. Each invoice should show the supplier, customer, tax number, taxable amount, rate, and VAT charged. Keep supporting records for purchases and sales.

VAT returns must be filed electronically by the 25th day of the month after the reporting period. The reporting period may be monthly or quarterly. The assigned period depends on the business and its tax record.

Payment is usually due by the same deadline. A late return can lead to interest, penalties, or review. Build a filing calendar with time for checks.

Input VAT is VAT paid on eligible business purchases. A business can reclaim it through its VAT return when conditions are met. The purchase must support taxable business activity.

The business also needs a valid invoice. Some costs require extra proof or face special deduction limits. Keep purchase contracts, delivery records, and payment evidence where relevant.

Before filing, check these items:

1. Match sales invoices to the sales ledger.
2. Check each VAT rate against the supply.
3. Remove private or unsupported costs.
4. Test input VAT against valid purchase invoices.
5. Review EU sales and reverse charge entries.
6. Submit the return and pay by the 25th.

Good records make audits faster. They also reduce errors when customers, rates, or supply places change.

How VAT refunds work in Romania

A VAT refund can arise when deductible input VAT exceeds output VAT. Output VAT is the tax charged on sales. Input VAT is the tax paid on eligible costs.

The business reports the difference in its VAT return. It may carry the credit forward or request payment, subject to the rules. The tax authority can check the claim before paying it.

Refund claims need strong evidence. Keep invoices, contracts, transport records, and proof of business use. Missing records can delay payment or reduce the claim.

Foreign businesses may seek refunds for Romanian VAT under separate procedures. Their eligibility depends on where they are established and their local activity. The claim period and document rules also matter.

Check every invoice before making a claim. A refund is not a substitute for correct VAT treatment. It only returns VAT that the business can legally deduct.

Retrospective VAT law changes and updates

VAT law can change the rate, threshold, filing rule, or deduction treatment. A retrospective change may affect past invoices or earlier reporting periods. This creates a need for prompt review.

Start by finding the law’s effective date. Then check whether it uses the invoice date, supply date, or payment date. These dates can produce different VAT results.

Next, review open returns and unpaid invoices. Correct invoices where needed. Amend VAT returns when the rule requires an adjustment.

Keep a change log for each update. Record the old rule, new rule, start date, affected supplies, and action taken. This gives the finance team a clear audit trail.

Businesses should watch official Romanian tax notices and EU updates. Ask a local tax adviser to review complex changes. This is especially important for foreign companies and mixed supplies.

A simple way to manage Romania VAT

Start with the correct registration status. Then map each sale to its place of supply and VAT rate. Keep the evidence that supports each choice.

Use one monthly check for invoices, input VAT, sales, and payment deadlines. Track the RON 395,000 threshold even before registration is required. Review foreign transactions before they begin.

The main rules are clear. The standard rate is 21%, with 11% and 9% reduced rates for listed items. Returns are filed electronically by the 25th, and eligible input VAT can be reclaimed.

Strong records make Romanian VAT compliance less risky. They also help the business act quickly when the law changes.