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Registration for VAT purposes

The establishment of a company involves several steps, some of them being undertaken before the actual registration, while others must be completed after registration at the Trade Register. One of the steps that must be considered after the establishment of a company is the registration for VAT purposes.
 
The value added tax is one of the most important taxes collected by the Romanian companies, but the registration for the purpose of paying this tax does not automatically return to the registration of a company. Thus, companies can register for VAT purposes by option or when exceeding the ceiling of 300,000 lei annually.
 
Below, we invite you to read about the registration procedure for VAT purposes. Also, our specialists can help you register a movie or, if you wish, you can access the LaRegistru platform to start the process of registering a company in the shortest time.
 

Who and how can be registered for VAT purposes?

The main source of law that provides for registration for VAT purposes is Law no. 227/2015 regarding the Fiscal Code that was amended by Order no. 167 of January 30, 2019 which has several provisions. Thus, both the different types of companies that can be registered in Romania, as well as the authorized natural persons (PFA) and companies can file applications for VAT purposes.
 
One of the provisions of the order issued in 2019 is the simplification of the procedure for obtaining the VAT code for the limited liability companies (SRL) that can be registered for this purpose on the day they submitted the application for registration.

Both companies and PFAs can register for VAT purposes by option or if they have exceeded the annual turnover of 300,000 lei. In the latter case, obtaining the VAT code becomes mandatory.
Another type of registration for VAT purposes is that for intra-Community operations. This is only necessary if certain intra-Community transactions with non-VAT payers take place.
We are available with various accounting services, including registration for VAT purposes.
 

Registration for VAT purposes by option

Although registration for VAT purposes is not mandatory when setting up a company, its administrators, shareholders or associates can express their choice by submitting a few documents to the National Tax Administration Agency (ANAF) from the county in which the company is registered.
It is well known that ANAF can approve or reject the registration according to the steps taken by the company.
 
In order to facilitate the registration procedure for VAT purposes you can count on our company registration and accounting services. Thus, we can deal with all aspects of setting up the company from the beginning to the start of the business.
 

Registration for VAT purposes when exceeding the limit

Once the threshold of 300,000 lei has been exceeded, a company will have the obligation to register for VAT purposes in Romania. The steps for obtaining the VAT code both at the optional registration and at exceeding the ceiling include:
 
  • completing the declaration on the own responsibility of the administrators or associates, depending on the type of company (it is submitted online);
  • filing the statement together with information about the directors and associates of the company;
  • the submission of the statement of mentions (Form 010) and the proof of the submission of the declaration on its own responsibility
  • verification of documents submitted both online and in physical format by ANAF;
  • issuing the decision approving the registration for VAT purposes of the company or the PFA.
 
It is good to keep in mind that although in the case of companies the approval is issued on the day of submission of the application, ANAF can revoke this decision in case the documents submitted are non-compliant. Therefore, we invite you to contact our agents who can guide you in preparing and submitting the necessary documents in order to obtain the VAT code.
 
We can also help you obtain the EORI code which will be useful in intra-Community economic activities.
 

Other information about registration for VAT purposes

Firms and persons wishing to register for VAT purposes must consider the following aspects:
 
- ANAF will issue the final decision for registration for VAT purposes within 15 days from the submission of all documents;
- only the associations that own 25% or more of the social capital of a company must submit the declaration on their own responsibility;
- registration for VAT purposes for intra-Community acquisitions is mandatory only if the value of the goods exceeds 34,000 lei per year;
- ANAF can cancel the VAT code of a company if it has not submitted a VAT return for 6 consecutive months or 2 consecutive quarters.
 
For help in setting up a company and obtaining the VAT code, please contact us.

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