The country is a good place to do business given its location. However, to do this requires a value-added-tax registration for tax purposes. Once it is done, a unique Romanian value-added tax number is issued to taxpayers. As all EU member states have a fixed format for their value-added tax numbers, the country has the prefix “RO” followed by a number usually allocated by the tax authorities. Only businesses with VAT numbers may carry out trading and charge VAT on the sales of goods.
A taxpayer is liable to pay value-added tax on business premises, where decisions are taken by the management. A non-resident entity is eligible for value-added tax in case of a fixed establishment with enough resources to perform regular deliveries of goods. If you are interested in learning about VAT and its registration in this country or you are a business owner looking to register your business, this guide provides quality information on the registration of VAT numbers in Romania and the process of registration.
Taxable activities
For an operation to be VAT taxed, it must meet the listed conditions:
- Represents a supply of goods or provision of services
- The location of delivery or supply is within the nation
- Involves taxable persons
- Form of economic activity
Types of VAT rates
The standard rate is 19 percent, applying to goods and supplies of services, including imports without exemption. The reduced rate of 9 percent is levied on bread and bakery products, wheat, human and veterinary medicines, books, accommodation in hotels, cinema tickets, etc. The reduced rate of 5 percent applies to the delivery of housing as part of social policy, including homes for the elderly and pensioners, orphanages and rehabilitation centers, and rehabilitation for children with disabilities. The reduced rate of 5 percent is charged on the price of the housing having a surface area of over 120 square meters.
Romanian VAT registration thresholds
There is no threshold for foreign businesses legally registered for VAT/GST/Tax in their home state. The registration threshold for European-registered companies selling goods online to local consumers is RON 118,000 per annum.
Registration of a VAT number
This depends on the location of a business and there are three main types, they include registration for foreign companies, local companies, and online sellers.
Registration for a foreign company
Foreign companies with businesses in this country should register for VAT. They have to appoint a fiscal representative to handle the process. After the required documents are verified, the tax authorities will issue a VAT number, consisting of the country code (RO), followed by 10 digits.
VAT registration for local companies
ANAF gives out application forms for the process to taxpayers. Forms 098 and 088 are for companies exceeding the 300,000 lei threshold. Form 099 is for VAT re-registration.
Registration for online sellers
For an online business, registration is compulsory with a distance threshold of EUR 10,000. Registration procedures can be done by a representative backed by a power of attorney.
Information required during registration
The information to be provided is based on the location of the business. Entities in the EU can register directly with the Romanian tax authorities or appoint a fiscal representative. Non-EU companies have to register through a fiscal representative. EU-based taxpayers need to submit these documents during registration:
- Notarised copy of VAT certificate
- Articles of Association
- A copy of an extract from the company’s national trade register.
- Sales or orders and agreements.
- Non-EU-based businesses require this additional documentation:
- Statement of commencement of the activity
- Power of attorney
- Letter of acceptance to by the fiscal representative
- Articles of association
- Estimated annual turnover
The time frame for registration
It takes no more than 45 days to complete the registration. Provided all documents submitted are accurate and within the requirements of the register.
Note that businesses must register within 10 days after the month they became liable ends.
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