How to Register for VAT in Romania: A Practical Guide

Value Added Tax (VAT) is a key consideration for any business operating in Romania. Whether you are setting up a new company or expanding an existing one, understanding when and how to register for VAT is essential for compliance and smooth operations.

This guide explains the registration process, from mandatory thresholds to voluntary registration, and outlines what you need to prepare before applying.

When is VAT registration mandatory?

In Romania, a business must register for VAT once its annual turnover exceeds the mandatory threshold of 300,000 lei. This applies to companies established in Romania. The calculation takes into account the total value of taxable supplies of goods and services, excluding VAT.

The obligation to register arises if turnover in a calendar year exceeds the threshold. Once registered, the business must charge VAT on its sales and can deduct VAT on its purchases. If a business expects to exceed the threshold in the current year, it may register voluntarily before reaching it.

Voluntary VAT registration

Even if your turnover is below the threshold, you can choose to register for VAT voluntarily. This can be beneficial if you trade with other VAT-registered businesses, as it allows you to reclaim input VAT. It can also make your business appear more established to potential clients and partners.

To register voluntarily, you must demonstrate that your business has a genuine economic activity. The tax authorities may ask for documents such as contracts, invoices or proof of business premises.

How to register for VAT

VAT registration is handled by the National Agency for Fiscal Administration (ANAF). The application can be submitted online through the e-guvernare portal or in person at your local tax office.

You will need to complete form 010 – „Declarație de înregistrare fiscală/Declarație de mențiuni pentru persoane juridice, asociații familiale, persoane fizice autorizate, persoane juridice străine” – and provide supporting documents. These typically include:

• Certificate of company registration
• Articles of association
• Proof of registered office
• Identity documents of legal representatives
• Evidence of economic activity (for voluntary registration)

After review, ANAF will issue a VAT registration certificate. The effective date of registration is usually the date the application was submitted, but it can be later if additional checks are needed.

Obligations after registration

Once registered, you must charge VAT on your sales at the applicable rates (standard, reduced or zero). You must also submit periodic VAT returns (form 300) to ANAF, typically on a monthly or quarterly basis, depending on your turnover and status.

You are required to keep proper accounting records and issue VAT invoices to your customers. You can deduct input VAT on business purchases, subject to conditions.

Deregistration

If your turnover falls below the threshold and you no longer wish to remain VAT-registered, you can request deregistration. This is done by submitting form 096 to ANAF. Deregistration can also occur automatically if your business ceases activity.

Before deregistering, you must ensure that all VAT returns are filed and any outstanding VAT is paid. You may also need to adjust input VAT on remaining stock or assets.

Practical tips

• Keep clear records of turnover to monitor the threshold.
• If you deal with EU businesses, check the rules for intra-community transactions.
• Consider seeking advice from a Romanian accountant before registering, especially if you are a foreign business.
• Be aware that VAT registration may affect your pricing strategy, as you will need to add VAT to your invoices.

VAT registration is a significant step for any business in Romania. By understanding the process and meeting the requirements, you can avoid penalties and run your operations smoothly.