VAT chargeable upon receipt of payment

Companies with a total revenue less than 500,000 EUR (the equivalent of 2,250,000 RON) in 2012 can apply for VAT chargeable upon receipt of payment.

This tax regime used to be compulsory in 2013 for all companies with a total revenues less than 500,000 EUR but is not anymore in 2014.

When registered for VAT chargeable upon receipt of payment, companies must apply the following tax regime to pay the Romanian state.

Collected VAT

Companies must pay the VAT collected from their Romanian clients on the day when their bill is paid.

The payment used to be so in 2013:

• On the date when the bill is paid if the payment takes place in the 90 days after the bill is issued.
• 90 days after the date the bill is issued if the payment does not take place in the 90 days after the bill is issued.

Deductible VAT

Companies can deduct VAT incurred from Romanian suppliers on the date the bill is paid. 

Other consequences

This tax regime means that the companies that pay VAT upon receipt of payment must additionally record on this type of issued bills a mention of “TVA la incasare” (VAT chargeable upon receipt of payment).

Companies which do not apply for the VAT chargeable upon receipt of payment system cannot deduct VAT from bills received from their Romanian suppliers until the bills have been paid.

Bills issued from Romanian companies for clients located outside of Romania must now include the following information: 

• for services rendered: “Operatiune neimpozabila in Romania” (“Non-taxable service in Romania”) and “Taxare Inversa” (“Self-assessment”) on different lines or columns.
• for delivery of goods: “Operatiune Scutita cu Drept de Deducere” (“Exempt and deductible service”) and “Taxare Inversa” (“Self-assessment”) on different lines or columns.