Romanian VAT consolidation

Establishment of a VAT tax group

Establishment of a VAT tax group is also known as VAT tax consolidation.

Romania allows tax consolidation (not all countries permit this).

Companies subject to VAT who wish to consolidate VAT tax must be managed by the same tax authorities (as of January 1, 2012). There is no longer a condition where each member of the group is large contributor (meaning companies with a turnover greater than 70 million RON or who have declared an investment of 10 million EUR).

In the first VAT calculation of the consolidated group, the designated representative of the group also includes the VAT balances to be paid at the end of the prior financial period with the negative balances which were not subject to a VAT payback request return.