VAT Registration Romania
In order to register for VAT purposes in Romania, you must reach some thresholds, for instance, internet selling companies must reach 300,000 RON per year in order to register for VAT number. In 10 days from the end of the month in which the business became liable for VAT purposes, it is necessary for the company to make the registration.
The law regarding VAT registration has brought new updates since 2017 regarding new criteria for evaluating fiscal risks for registration or cancellation of VAT certificates. All new criteria must be met in order to approve the evaluation of fiscal risks for imposable individuals who request added value taxation registration.
The VAT number was introduced as a necessity to help companies with administrative tools, which is applied to those companies selling services or goods across Europe. In order to be able to obtain a VAT number you must register as an intra-community trade operator. The procedure and all required documents are mandatory due to the fact that any entity that has not registered with the registry of intra-community operators will not obtain a valid EU VAT number.
ANAF considers that the new indicators are very important in the evaluation and if they are not met, it represents a fiscal risk. Therefore, the companies that want (choose) or are obliged to register for VAT purposes, if they exceed the fiscal value limit, must submit all requested documents in order to obtain the VAT number. No matter the situation, the necessary documents are mostly the same in both cases:
• 010 form in 2 original copies
• 099 form for VAT purposes – original
• An affidavit regarding the associates and administrators not having committed any crimes in original
• An affidavit written and signed by the administrator to state that the company is or isn’t developing any economic activities at the headquarters or outside them – in original
• Am affidavit to state that the associates and administrators meet the requested conditions
• For the associates or administrators that are not Romanian residents, a copy of the documents attesting they rights to stay in the country
• A copy of the documents that show the last 12 months incomes for administrators as individuals (if necessary, Romanian authorized translation)
• Copy of the bank statement
• A copy of the document that attest the legal existence of juridical person associates (from ONRC or the equivalent for foreigners – authorized translation)
• Work contract for other employee (except accountant or economic director) in copy
• Work contract for accountant or accounting company – in copy
• Detailed certified statement from ONRC in original
• Legal documents for ownership of the space used as headquarters and secondary offices (for more than a year) in copy
• Verification scale for the last month and year (if the case) in original
• Registration certificate from ONRC
• Copy of the ID of the empowered person
• Empowerment to submit the request for VAT registration in original
• Paying debts to the state budget, if the case, before obtaining the VAT number
On the other hand, companies that have exceeded the limit of 300.000 lei, will need to submit fewer documents in order to register for VAT purposes, but in both cases, all copies must me stamped, signed and certified according to original documents, and inserted in a rail file.
After the registration has been approved, it takes about two weeks, a unique VAT number will be allocated to your company. EU members have a fixed format for VAT numbers, the Romanian one includes “RO” as a prefix (ex: RO 1111111111 – 10 characters). After the business gets its’ unique VAT number, it has the right to start trading and charging Romanian VAT, complying to the VAT regulations and it must file regular returns.
It is also possible for a VAT number to be cancelled in the following situations:
- It the company is declared inactive
- If the company has become temporary inactive – registered in the trade registry
- If under certain conditions, there was no deposit of VAT returns – provided by the Tax Code
- If the taxpayer’s associates hold criminal tax offenses or facts provided by the Law
- If the tax returns for 6 months did not show purchases of services, supplies or goods\
- If the person in cause wants to apply for exemption VAT regime
- If the taxpayer had no right to apply for VAT registration
- If the company established in Romania but has no intention to develop economic activity on Romanian territory
VAT registration is mandatory for the following entities:
- A taxable person that has a business established in Romania, unregistered under art.153 who provide services for a customer in other EU member state that is taxed under the state’s legislation
- A taxable person with a business established in Romania, unregistered under art. 153, if goods or services from a supplier established in other member state – who is taxed there, are received here and the receiver is liable for paying taxes on it
- A taxable or non-taxable person established in Romania, unregistered under art. 153, before making a purchase with a value exceeding the threshold set by intra-community acquisitions in the calendar year
- A taxable or non-taxable person established in Romania, not registered under art 153 that will make intra-community acquisitions according to art 126 par 6.
No matter the situation you find yourself in, if you still have doubts that it would be better for you to register for VAT purposes or not, it would be better to consult with a lawyer so that you will make the best decision and comply with the regulations. It might seem a little hard to process all the information, but a lawyer specialized in opening new companies and applying for VAT number will definitely make it clear for you.
For more information do not hesitate to contact our law firm Darie, Manea and associates to help you. We offer free consultation for VAT purposes registration. Our lawyers in Bucharest have a vast experience in supporting local and international companies to register for VAT purposes. We can assist you every step of the way and help you same time by making the process go easier and smoother.
by Cristian Darie