Romania: New Procedure for VAT Registration

Romania: New Procedure for VAT Registration

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After simplifying the procedure for VAT registration in 2020 (i.e. risk analysis by the taxpayer after VAT registration instead of on the submission date of application for VAT registration), the Romanian tax authorities approved another simplification of the VAT registration procedure at the beginning of this week.

Order no. 239/2020, published in the Official Gazette no. 182/23 February 2021, provides that Romanian taxpayers may require to register for VAT:

  1. before carrying out taxable operations if they expect to achieve revenue exceeding EUR 88,500 (RON 300,000) or if they expect to realize revenue of less than EUR 88,500 (RON 300,000) but want to register for VAT purposes;
  2. after carrying out taxable operations:
    i. if they reach or exceed the revenue threshold of EUR 88,500 (RON 300,000) during a calendar year;
    ii. if their turnover during a calendar year is less than EUR 88,500 (RON 300,000), but they want to apply for VAT registration.

Romanian taxpayers mentioned under point 1) will be required to submit a special registration form to the Romanian tax authorities on the same day the documents for incorporation of the company are submitted to the Trade Registry.  Romanian taxpayers who are not subject to registration with the Trade Registry (e.g. freelancers) will be required  to submit a specific registration form on the same day the documents for tax registration are submitted to the Romanian tax authorities. 

Romanian taxpayers mentioned under points 2) and 3) will only be required to submit a specific registration form. After the VAT registration certificate is issued, the Romanian tax authorities will review the taxpayers’ records to ensure that:

  • they are not fiscally inactive;
  • they or their shareholders/administrators do not have criminal records and/or deeds in their tax record. 

All VAT registration forms may be submitted either on paper or electronically.

By Carmen Mazilu, Associate, Noerr