Value Added Tax was introduced in Romania in July 1993. Is it called Taxa pe valoarea adaugata locally.
The rules on Romanian VAT are contained within the VAT Law 2003 and Tax Code. This last went through substantial changes in 2007 following Romania’s entry into the European Union in 2004. The Ministry of Finance oversees the running of the VAT regime, and produces regular notices (Norme) providing supporting guidance.
Following Romania’s accession into the EU, it was obliged to implement all of the conditions (with some derogations) for VAT laid out in the EU VAT Directives. This covers the rules and processes for Romanian VAT registrations, returns, compliance and related reporting.
Non-resident traders operating in Romania may have to VAT register if there are providing goods in certain situations. In common with the other EU member states, this includes:
Since the implementation of the 2010 VAT Directive, there are very few situations where companies providing services in Romania are required to locally VAT register.
If you do need to VAT register, read our Romanian VAT registration briefing to understand the requirements, including any VAT registration thresholds that may apply.
There may be further exemptions from the requirement to VAT register in Romania that you should consider. Please read our Romanian VAT Reverse Charge briefing.