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Summary

Standard VAT rate: 19%
E-Invoicing: permitted, but not mandatory
Real-time reporting: fiscalization model
Digital service tax: no

Compliance and rates

VAT number format

All EU member states have a fixed format for their VAT numbers. In Romania it includes 8 digits and the prefix RO (i.e. RO 01234567)

VAT rates

The standard VAT rate in Romania is 19%, with reduced rates od 9% and 5% on certain goods and services.

19% (Standard) – Applies to all taxable supplies, with certain exceptions

9% (Reduced) – Some foodstuffs, hotel accommodation, pharmaceutical supplies, some agricultural supplies, water supplies

5% (Reduced) – Books (except e-books) , accommodation in the hotel sector or similar-function sectors, restaurant and catering services (except alcoholic beverages), the right to use sports facilities for the purpose of practicing sport and physical education

0% (Zero) – Exportations

VAT payments and returns

All businesses with Romanian VAT number must submit periodic VAT reports and payments.

VAT Returns frequency

For all companies that operate in Romania, VAT returns must be submitted on a monthly basis or quarterly basis, depending on the annual revenue of the business entity.

Monthly – by the 25th of the following month if the annual revenue is higher than EUR 100,000.

Quarterly – by the 25th of the following month if the annual revenue is less than EUR 100,000.

Penalties in case of late filings or misdeclarations

Non-registration and/or late registration are subject to fines from RON 1,000 to RON 5,000 for the medium and large taxpayers, and a fine from RON 500 to RON 1,000 for other taxpayers.

Non-payment and/or late payment of the VAT may lead to the following penalties:

a) late payment interest of 0.02% per each day of delay

b) late payment penalty of 0.01% per each day of delay.

Failure to submit or late submission of VAT returns will trigger a fine from RON 1,000 to RON 5,000 for the medium and large taxpayers, and a fine from RON 500 to RON 1,000 for other taxpayers.

The fine for submission of incorrect or incomplete VAT recapitulative statements is from RON 500 to RON 1,500.

Invoice requirements

Invoices must contain at least the following information:

  • date of issuance
  • a unique, sequential number of the invoice
  • shipping date
  • supplier / issuer data (company name, address, tax number) if established. If not, then include information about appointed fiscal representative
  • customer data (address and other data if available, tax number)
  • full description of goods and services provided
  • quantity of goods and services provided
  • net price per unit
  • the net, taxable value of the invoice
  • rate and amount of VAT applicable for the category of goods and services provided
  • if buyer is obligated to pay the VAT, add “reverse charge”
  • if some special scheme applies, express the name of that regime
  • the invoice total, gross amount
Penalties for non-compliance with invoicing and accounting obligations

Failure to present documents upon the request of the Romanian tax authorities is subject to a fine between RON 4,000 and RON 10,000 for the medium and big taxpayers and a fine from RON 2,000 to RON 5,000 for the other taxpayers. The taxpayers have a chance to reduce that fine by half if pay withing 48 hours.

E-Invoicing

Electronic invoicing is permitted, but not mandatory at this moment.

Electronic cash registers

The companies are obliged to send monthly sales records to National Fiscal Authority (Agenția Națională de Administrare Fiscală – ANAF).

Monthly data must be transmitted to the ANAF by the 20th of the month for the previous month.

What information should be transmitted to Romanian Fiscal Authority (ANAF)?

1. Data on the tax invoice – number, gross amount (incl. VAT), date and time, the fiscal series of the electronic marking machine)

2. The data from the daily closing fiscal report

3. Breakdown of working time of the cash register (by events – lack of electricity, connected, disconnected, reconnected, restarted, etc.)

How does it work?
  1. The XML file, signed using the digital certificate of the fiscal electronic marking device, should be exported on an external storage medium
  2. On the ANAF portal, the XML file will be validated by ANAF and attached to a PDF file
  3. The PDF file together with XML file, signed with a qualified digital certificated, will be transmitted to the Romanian Fiscal Authority (ANAF)

Turnkey invoice compliance.

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