REGISTRATION FOR VAT PURPOSES IN ROMANIA
Registration for VAT purposes in Romania is mandatory as soon as the company has a turnover of over RON 300,000 (approximately EURO 65,000) per year. Below this amount, registration is optional.
REGISTRATION FOR VAT PURPOSES AT INTRA - COMMUNITY LEVEL
Registration for VAT purposes at intra-Community level is mandatory for all companies performing an intra-Community operation:
- either the purchase or sale of a service from another company in the European Union;
- either intra-Community acquisition or delivery.
INDEPENDENT PROCEDURES
Registration for VAT purposes at intra-Community level and registration for VAT purposes in Romania are procedures independent of each other.
In this manner, a Romanian company can be subject to VAT in Romania without being subject to VAT at intra-Community level (this is the case, for example, of a Romanian company achieving a turnover above RON 300,000 without performing international operations) or, on the contrary, subject to VAT at intra-Community level without being subject to VAT in Romania (this is the case, for example, of a Romanian company that performing international operations without achieving a turnover above RON 300,000).
A Romanian company subject to VAT at intra-Community level without being subject to VAT in Romania is in a situation where:
- it sells its products and services to other European companies without taxes, i.e. without the application of VAT in Romania
- it purchases its products and services from other European companies without taxes, but will then have to pay VAT in Romania (at a rate of 19%) for these products and services purchased in this manner (VAT which otherwise will not be deductible, as the company is not subject to VAT in Romania).
When a Romanian company is subject to VAT at intra-Community level in the beginning (as it performs international operations without achieving a turnover above RON 300,000) and then is subject only to the national VAT regime (as it achieves a turnover above RON 300,000), the Romanian tax procedural rules compel it to resume its registration procedure for VAT purposes at intra-Community level in order to obtain a new intra-community VAT registration number.
