Our team assists foreign and local investors who wish to make this registration, either voluntarily or when the company exceeds the mandatory registration threshold.
The establishment of a company involves several steps, part of which take place before the actual corporate registration, while others must be completed after registration with the Trade Register.
One of the steps that must be taken into account by investors once they register a company in Romania is the subsequent registration for VAT purposes.
The value-added tax is one of the most important taxes to which Romanian companies are subject, however, registration for VAT purposes is not performed automatically.
Companies can register for VAT purposes by option (voluntarily) or when exceeding the threshold of RON 300,000 for their annual turnover.
Below, we invite you to read about the registration for VAT purposes in 2022.
If you need more information, or if you require specialized assistance for this registration (through a power of attorney), our team specializing in company formation in Romania can give you the needed details and can assist you.
Foreign companies are required to register for VAT purposes in Romania on a mandatory basis, as the registration threshold only applies to taxable companies registered in Romania.
Non-resident companies are expected to register when they engage in certain types of activities, such as the transfer of goods to Romania, Intra-Community acquisition of supply of goods in the country, the export of goods, distance sales (subject to conditions), or other cases involving the dispatch of goods to Romania.
The following issues are relevant to non-resident legal entities:
A taxable person who has the headquarters of economic activity outside Romania, but has a fixed seat in Romania must register for VAT purposes as follows:
The provisions briefly listed above do not apply to a person treated as a taxable person only because they occasionally make intra-Community supplies of new means of transport.
National Agency for Fiscal Administration (NAFA/ANAF) President’s Order no. 239 of February 17, 2021, published in the Official Gazette no. 182 of February 23, 2021, offers the legal context for the Registration Procedure approved for value-added tax purposes, according to the provisions of art. 316 paragraph (1) letter. a), b) or c) of Law no. 227/2015 on the Fiscal Code, with its subsequent amendments and additions.
According to the legal procedure, any taxable person having its seat of economic activity in Romania, that carries out or intends to carry out an economic activity that involves taxable operations, is exempt from VAT with the right of deduction, and/or operations that have the place of delivery of the service outside Romania, but which give the right to deduction, must be registered for VAT purposes according to article 316 paragraph (1) letter a), b) or c) of the Fiscal Code.
According to law, registration for VAT purposes takes place before or after the commencement of economic activity in Romania.
Our agents can assist with this registration. The following video also summarizes the main requirements for VAT registration in Romania:
Voluntary registration for VAT purposes in Romania is the situation in which the taxable person submits the VAT registration request before the start of its economic activity, upon declaring that it will exceed the standard registration threshold of RON 300,000 for the fiscal year.
This type of voluntary registration can also take place if the taxable person declares that they will have a turnover below the threshold, but opts for the registration, nonetheless.
The applicant has two options:
The registration for VAT purposes is valid starting with the date on which the registration certificate for VAT purposes is communicated to the applicant.
The registration process was simplified through Emergency Ordinance 69/2020 through which locally registered companies can be registered for VAT purposes and are no longer subject to risk analysis, irrespective of whether they request the VAT code upon their initial registration or afterward.
For these companies, the risk analysis is to be performed following the VAT registration, during the company’s activities.
Our team can help you throughout the VAT registration procedure.
We also provide accounting services upon request and you can find out more information about our VAT-submission-related services by reaching out to us.
Our team will handle all of the aspects concerning the business formation, including VAT registration for legal entities such as SRL and SA companies, and also for entities that are not subject to compulsory registration.
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:
It is good to keep in mind that the National Agency for Fiscal Administration can reject the application if the submitted documents are non-compliant.
We advise company owners in Romania to reach out to our team if they wish to verify the list of documents that need to be submitted for VAT registration purposes.
By working with us, you can rest assured that the registration process will be straightforward.
We can also help you obtain the EORI code which will be useful in intra-Community economic activities.
If the taxable person applying for registration for VAT purposes is declared inactive for fiscal purposes, the specialized department will draw up the Decision to cancel the registration for VAT purposes;
Our team can give you more details about particular situations and can provide you with counseling as needed, according to the type of company, its economic activities, and the projected annual turnover.
Value-added tax is an indirect tax applied to the provision of certain types of goods and services.
The following rates were in force at the time this article was written:
Our team can give you more details about the conditions for the VAT exemptions in Romania.
As in all other countries that impose this indirect tax, local and foreign companies in Romania are not only required to observe the VAT registration threshold and mandatory requirements, but also those for periodic VAT reporting, filing and payments.
VAT returns are submitted monthly and taxable legal entities with an annual turnover below EUR 100,000 are required to submit quarterly filings and make quarterly payments.
VAT submissions are to be made no later that the 25th day of the month following the one for which the return is made or following the period for which the return is submitted.
Working with an accountant is the common practice, and VAT reporting and filing will be handled accordingly.
Our team assists local and foreign companies operating in Romania that engage in transactions that are subject to the standard or reduced value-added tax rates.
For help in setting up a company and registering for VAT purposes in 2022, please contact us.
We can also provide you with more details about the micro-company regime and how companies can prepare for the upcoming changes to this regime.
You can always reach out to us for updated information about corporate compliance in Romania.