VAT

Last reviewed 21 Aug 2023

Tax rates

Since 1 August 2025, the standard VAT rate has increased from 19% to 21%. At the same time, the reduced VAT rates of 5% and 9% have been replaced by a single reduced VAT rate of 11%.

The reduced VAT rate of 11% applies to the following:

• supply of medicinal products for human use
• supply of foodstuffs, including beverages, intended for human and animal consumption, as well as live animals and live poultry of domestic species (excluding: alcoholic beverages; non-alcoholic beverages falling under CN code 2202; food products with added sugar with a total sugar content of at least 10 g/100 g of product, other than powdered milk for newborns, infants and young children; and food supplements as defined by Law No. 56/2021)
• supply of water and sewerage services
• supply of water for agricultural irrigation
• supply of fertilisers and pesticides of a kind normally used in agricultural production, including chemical ones, seeds and other agricultural products intended for sowing or planting, as well as the provision of services of a kind normally used in agricultural production
• supply of school textbooks, books, newspapers and magazines, in physical and/or electronic format, excluding those which, in whole or predominantly, contain video content or audio musical content, as well as those intended exclusively or mainly for advertising purposes
• supply of services consisting of granting access to castles, museums, memorial houses, historical monuments, architectural and archaeological monuments, as well as zoological and botanical gardens
• supply of firewood
• supply of thermal energy during the cold season to the population and other categories of consumer (i.e. public and private hospitals, non-governmental organisations and suppliers of social services)
• supply of dwellings as part of social policy, including the land on which they are built (i.e. dwellings intended to be used as homes for the elderly and pensioners; dwellings intended to be used as children’s homes and recovery and rehabilitation centres for minors with disabilities)
• accommodation in the hotel sector or in sectors with a similar function, including the letting of sites equipped for camping
• restaurant and catering services, excluding alcoholic beverages and non-alcoholic beverages falling under CN code 2202.

By way of exception, during the period 1 August 2025 - 31 July 2026, deliveries of residential properties to individuals will still benefit from the reduced rate of VAT of 9%, provided all of the following conditions are met:

• the usable area of the property does not exceed 120 sqm (excluding utility annexes)
• the total value, including the land, does not exceed RON 600,000 (excluding VAT)
• the property is delivered and habitable by 31 July 2026
• the buyer has not previously benefited from the reduced VAT rate on the acquisition of another property after 1 January 2023
• the parties have signed, by 1 August 2025, a contract stipulating the payment of an advance payment for the purchase of the property.

For contracts signed between 3 July and 31 July 2025, there is an additional requirement that an advance payment of at least 20% of the value of the property (excluding VAT) be made in full by 31 July 2025.

The application of the 9% reduced rate will be verified by public notaries prior to authenticating the contract for the transfer of ownership or for the making of an advance payment, by consulting the Register of Residential Property Acquisitions Subject to the Reduced Rate of VAT.

Supply of goods

Supply of goods and withdrawal for private use (self-supply) are taxable.

Place of supply of goods

Principally the place where the item is located at the time when the right to dispose of it is transferred (static supply).

In the case of dispatch/transportation by the supplier or purchaser: the place where dispatch/ transportation begins (moving supply).

The place of departure of passenger transport, where supplies of goods are made on board a ship, aircraft or train, for the part of the passenger transport carried out within the European Union (under certain conditions).

If installation / assembly of the goods by the supplier is required: the place where the installation is performed (supply of goods with installation).

Imports from third countries: if supplier is liable for import VAT, in importing country.

Supply of services

Supply of services and use of services for private use (self-supply) are taxable.

Place of supply of services

A differentiation is made between services rendered:

• to taxable persons (“Business to Business”, “B2B”) or
• to non-taxable persons (“Business to Customer”, “B2C”).

For the purpose of determining the place of the supply of services:

• taxable persons (within the EU holding a VAT registration number) and
• non-taxable legal entities holding a VAT registration number will be considered as “taxable persons”.

Basic rule

B2B	B2C
Place of recipient (The place where the recipient of services has established his business)	Place of supplier (The place where the supplier of services has established his business)

Special cases

	B2B	B2C
Supplies of services by intermediaries	Place of recipient (Basic rule)	Place of the underlying transaction
Property services	Place of the property	Place of the property
Cultural, artistic, scientific, educational, sports, entertainment or similar services, like services in connection with fairs and exhibitions including services of the respective organizers	Place of recipient (Basic rule)	If these are not transmitted over the internet or are not made available by any other virtual means: where the services are physically carried out. If these are transmitted over the internet or made available by any other virtual means: place of recipient.
Other services concerning the right of admission and related other services for events like fairs and exhibitions, other than those for which attendance is virtual	Place of the event	Where the services are physically carried out
Passenger transport	Distances covered	Distances covered
Transportation of goods (without intra-community portion)	Place of recipient (basic rule)	Distances covered
Intra-community goods transportation	Place of recipient (basic rule)	Place of departure of the transport
Ancillary transport services	Place of recipient (basic rule)	Where the services are physically carried out

 

	B2B	B2C
Appraisal and processing of movable tangible objects	Place of recipient (basic rule)	Where the services are physically carried out
Restaurant and catering services	Where the services are physically carried out	Where the services are physically carried out
Restaurant and catering services in connection with intra-community passenger transport	Place of departure	Place of departure
Renting of means of conveyance for up to 30 days	Where the means of transport is actually put at the disposal of the customer	Where the means of transport is actually put at the disposal of the customer
Renting of means of conveyance for over 30 days	Place of recipient (basic rule)	Where non-taxable person is established Special regulations for hiring boats
“Listed services” to third country customers	Place of recipient (basic rule)	Where non-taxable person is established
“Listed services” to customers in the EU	Place of recipient (basic rule)	Where the non-taxable person is established

Mini-One-Stop-Shop (MOSS) / One-Stop-Shop (OSS)

As of July 2021, the One-Stop-Shop ("OSS") VAT schemes have been implemented. The system already existed in the Romanian Fiscal Code under the name “Mini One Stop Shop” (MOSS), but only for electronic services (telecom, radio and TV services) provided by taxable persons from an EU member state or third country to consumers within the EU.

As compared to the MOSS system, this enlarged OSS covers three special regimes:

1. the special regime for certain services provided by taxable persons not established in European Union towards non-taxable persons (B2C services);
2. the special regime for intra-community distance sales of goods between member states, for deliveries of domestic goods made by electronic interfaces facilitating such deliveries and for certain services provided by taxable persons established in EU towards non-taxable persons but not in the Member State of consumption;
3. the special regime for the distance sale of goods imported from outside EU to EU consumers with value up to EUR 150.

The OSS scheme enables suppliers of goods and services to EU consumers in a B2C (business-to-consumer) context to fulfill their VAT obligations across all Member States by reporting and paying VAT in the Member State in which they registered for the OSS. This eliminates the need for registration for VAT purposes in multiple EU states.

Reverse Charge (reversal of tax liability)

For: (i) acquisitions of services by Romanian taxable persons from providers not established in Romania; (ii) acquisitions of goods by Romanian taxable persons from non-Romanian suppliers, under certain conditions.

As special regulations, for the following transactions between Romanian entities: supply of waste, wood, cereals, greenhouse gas emissions certificates, green certificates, electricity supplied to taxable energy traders, natural gas supplied to a taxable person trader, buildings and land taxable by law or by option, mobile phones, laptops, PC tablets and other similar components.

For cereals, energy, green certificates, mobile phones, laptops, PC tablets and other similar components the reverse charge mechanism is applicable until 31 December 2026.

Requirements

Both supplier and recipient should be VAT registered.
In case of services acquired by Romanian taxable persons from non-Romanian entities, the providers should not have in Romania a place of business or a fix establishment involved in the provision of the services.

Consequences

Invoice without VAT, indication of the reverse charge, VAT registration numbers of the supplier and the recipient.

The recipient evidences the VAT as both input and output VAT, without the recipient effectively paying the VAT to the supplier.

Application also

The reverse charge mechanism is applicable in case of supplies of mobile phones, devices with integrated circuits, such as microprocessors and central processing units and gaming consoles, PCs and laptops only if the value of the goods included in an invoice, VAT exclusive, is higher than RON 22,500.

Tax reliefs

Exemption (Input VAT deductible even though no VAT chargeable on supply of goods and services)

• • Exports of goods
  • Passenger transport via cross-border transportation
  • Intra-community supplies
  • Certain services rendered within free trade zones
  • Supply of goods in duty free warehouses and similar services
  • Supply of prostheses and accessories thereof, excluding dental prostheses exempt from VAT
  • Delivery of orthopedic products.

  The following operations will no longer be VAT-exempt:

  • the provision to non-profit entities of construction, rehabilitation and modernisation services for hospital units
  • deliveries of medical equipment and sanitary products to non-profit entities, as previously regulated under Art. 294, para. (5), letters a)-b¹) of the Fiscal Code.

Zero rates (“non-genuine” tax exemption) (Input VAT is not deductible)

• services rendered by banks, insurance companies and pension funds
• provision of services carried out in the course of their professional activity by dentists and dental technicians, as well as the supply of dental prostheses carried out by dentists and dental technicians
• supply, at face value, of postage stamps valid for postal services, fiscal stamps and other similar stamps
• hospitalisation, medical care and operations closely related thereto, carried out by units authorised to perform such activities
• Provision of care and supervision services carried out by medical and paramedical staff
• Educational activities (under certain conditions)
• leasing of property (the landlord can opt for tax liability)
• supply of used buildings and land not zoned for building (the seller can opt for tax liability) etc.

Deductible input VAT

Taxable persons have the right to deduct VAT related to purchases provided that (i) the acquisitions are made for the purpose of carrying out VAT taxable operations or other operations allowing the deduction of input VAT, such as exports or intra-community supplies and that (ii) the taxable persons possess invoices issued in accordance with the legal requirements.

Generally, no deduction of input VAT may be claimed with respect to supplies which are exempt without deduction right or are not used for the purpose of taxable / exempt with credit operations. Only 50% VAT may be deducted on acquisitions related to cars not used exclusively for business purposes (e.g. vehicles other than the ones used for emergency services, sale agents, transport of persons, taxis etc.).

Starting with 30 April 2024, it is no longer possible to deduct the input value-added tax stated on invoices issued in the name of employees or administrators while on business trips and relating to transport and/or accommodation services paid for during these trips.

Input VAT correction

Input VAT corrections occur in cases such as:

• the deduction is higher or lower than the one that the taxable person had the right to operate
• there are changes to the elements taken into account for the determination of the deductible amount, made after the submission of the tax statement.

Input VAT corrections occur for capital goods over a period of 5 years, while for land and buildings the period is extended to 20 years.

Real estate

Rentals

Renting of immovable property is VAT exempt without credit; the lessor can opt to charge VAT.

Sales

The sale of old real estate property and land not zoned for building is VAT exempt without credit (seller may opt to charge VAT); the sale of new buildings and land zoned for building is subject to VAT. Buildings are considered to be new if sold in the year of commissioning or by 31 December of the following year. However, the sale of buildings and land between taxable persons registered for VAT purposes in Romania is subject to reverse charge.

Foreign taxable persons

Taxable persons without domicile or fixed establishment in Romania.

Registration

Registration required prior to carrying out the following transactions:

• intra-community acquisition/supply in Romania
• intra-community distance sales of goods where the dispatch or transport of the goods begins in Romania and for which the taxpayer opts to apply the OSS special scheme.

Government Ordinance no. 22/28.08.2025 introduces rules extending the VAT exemption scheme to cross-border relationships within the EU. More specifically:

1. A taxable person established in Romania may apply the small enterprise exemption scheme in other Member States provided the following conditions are met:

• the taxable person’s annual turnover at EU level does not exceed EUR 100,000 for the year in which the exemption is requested and for the preceding calendar year
• the value of supplies of goods and services delivered in the Member State where the exemption is intended to be applied does not exceed the exemption threshold applicable in that Member State.

A taxable person intending to apply the small enterprise exemption scheme in one or more Member States must file a prior notification with the ANAF. The ANAF will assign the taxable person an individual identification code for this purpose.

A taxable person applying the small enterprise exemption in other Member States must prepare and submit a quarterly report to the ANAF by the last calendar day of the month following the quarter in question, even if this is a non-working day. In addition, the taxable person must inform the ANAF about its exceeding of the EU-wide annual turnover threshold within 15 working days of the date on which the threshold is exceeded.

2. A taxable person established in another Member State may apply the small enterprise exemption scheme in Romania for supplies of goods and services in Romania, provided the following conditions are met:

• the taxable person’s annual turnover at EU level does not exceed EUR 100,000 during the year in which the exemption is requested and during the preceding calendar year
• the value of supplies of goods and services delivered in Romania does not exceed the Romanian exemption threshold of RON 395,000 during the year in which the exemption is requested and during the preceding calendar year.

The small enterprise exemption scheme applies in Romania if the taxable person has notified the Member State of establishment about its intention to apply the exemption in Romania.

In view of Romania’s delayed transposition of the EU provisions governing the small enterprise special exemption scheme, transitional measures have been introduced for taxable persons established in other EU Member States. Accordingly, a taxable person established in another Member State that has applied for the small enterprise special exemption scheme in Romania and for which the Member State of establishment has issued, by 1 September 2025, an identification code bearing the “EX” suffix and valid for Romania, will be entitled to apply the exemption to transactions carried out in Romania as from the date of issuance of that code, under the same conditions applicable to taxable persons established in Romania.

Refund of input VAT for taxable persons domiciled in the EU

The deadline for VAT refund application is 30 September of the following year.
If no sales are made in Romania, electronic application at the competent tax office in the EU member state (originating country) of the taxable person.

Refund of input VAT for taxable persons not domiciled in the EU

If no sales are made in Romania, refund must be requested by 30 September of the following year.
This is done by submitting a request to the Romanian tax authorities. The non-EU established taxable person will appoint a fiscal representative in Romania for VAT reimbursement, provided the input VAT amount exceeds EUR 50.

E-invoicing

Several amendments were made with respect to the RO e-Invoicing legal provisions applicable, from the year 2024 and until December 2025.

In present, the electronic invoicing system is mandatory for:

• Supplies of goods / services with place of supply / provision in Romania, carried out in B2B transactions or in relation to public institutions (other than B2G) by taxable persons established in Romania (i.e. Romanian legal entities or Romanian fixed establishments of foreign companies), regardless of whether they are registered for VAT purposes in Romania;
• B2B supplies of goods or services with the place of supply in Romania, made by taxable persons established in Romania (including Romanian entities and Romanian fixed establishments of foreign companies), regardless of whether they are registered for VAT purposes in Romania;
• B2B supplies of goods or services with the place of supply in Romania made by non-residents that are registered for VAT in Romania;
• Invoices issued for the goods or services with the place of supply in Romania to taxable persons registered for VAT in Romania but which are not established in Romania and to taxable persons established in Romania regardless of VAT registration status;
• B2C supplies of goods or services with the place of supply in Romania made by taxable persons established in Romania or by non-residents registered for VAT in Romania.

The following are exempt now from the above:

• exports of goods carried out by the supplier or another person on his behalf;
• intra-Community supplies of goods with the place of departure in Romania;
• the supply of goods/services to taxable persons not established nor registered for VAT purposes in Romania;
• fiscal receipts that meet the conditions of simplified invoices;
• services for which the issuance of invoices is not subject to the invoicing rules applicable in Romania;
• invoices for the supply of goods and provision of services where the place of supply or provision is not in Romania;
• invoices for intra-community supplies of goods, where the beneficiary established in Romania communicates a VAT number from another member state.

Starting from July 2024, amendments are made to the Fiscal Code, according to which, in the case of B2B business relationships between legal entities established in Romania, only invoices transmitted through the RO e-Invoice system will be recognized as valid tax documents and will be acceptable with a view to exercising VAT deduction rights.

B2C transactions are defined as deliveries of goods or services to individuals who either do not provide a tax identification code or choose to identify themselves with a personal numeric code. In cases where no tax identification code is supplied, invoices are issued using a code of 13 zeros as the beneficiary's tax ID.

Starting with 2026, the legal deadline for the transmission of invoices in the RO e-Invoice system in relation to B2B and B2C transactions is 5 working days from the date of issuance, but no later than 5 working days from 15th day of the month following the month in which the chargeable event occurs or an advance payment is received, unless the invoice has already been issued.

Suppliers / economic operators identified by a personal identification number (CNP), who conduct economic activities before January 15, 2026, must request registration in the RO e-Invoice Registry before that date.

RO e-Transport

Originally, the RO e-Transport system through which identification of shipments and generation of Unique Transport Codes is made in case of road transport of goods with high fiscal risk within Romanian national territory (these goods are included on a list that should be constantly monitored). Initially, subject to the monitoring were only the road transport of goods with high fiscal risk within Romanian national territory – performed by road vehicles with a maximum authorized mass of at least 2,5 tones and which transport goods with a total gross mass exceeding 500 kg or a total value of at least 10.000 RON.

Starting with 15 December 2023, the applicability of the RO e- Transport system was extended to cover, in addition to the road transport of goods with high fiscal risk, the international road transport of goods.

Currently, irrespective of the goods transported, the RO e- Transport system aims to monitor in real time the:

• intra-Community acquisitions and imports in Romania;
• intra-Community deliveries and exports from Romania;
• various non-transfers from or to Romania;
• goods transported under the call-off stock regime either to Romania or from Romania;
• intra-Community transit of goods, both for goods unloaded on Romanian territory for storage or for the settling of a new transport of one or more categories of goods, as well as for goods loaded after storage or after the settling of a new transport on national territory of one or more categories of goods.

In addition to the above operations, in the case of goods with high fiscal risk, there are also various transports for which the RO e-Transport system applies, such as: transactions within Romanian national territory (such as a local sale of high fiscal risk goods), goods transferred between different locations of the same company located within Romanian national territory etc.

The entity liable to report the transport of the goods and obtain the UIT code is to be established depending on the transaction performed, thus a thorough analysis of each case is required to properly determine the obligations of each party involved.

The legislation also provides for several exceptions from reporting under the RO e-Transport System:

• the transport of goods intended for diplomatic missions and consular offices, as well as international organizations, NATO member states' armed forces, the European Union, member states of the Partnership for Peace, or states with which Romania has concluded agreements in the field, or as a result of executing classified contracts according to the law or executing public procurement contracts that require the imposition of special security measures according to legal provisions to protect essential state security interests;
• the transport of excise goods circulating under excise suspension arrangements or with excise paid in the Member State of dispatch, by using the systems for monitoring the movement of excise goods (EMCS), for issuing the electronic administrative document (e-DA) or for issuing the simplified electronic administrative document (e-DAS);
• the transport of goods by postal service providers in postal parcels, under certain conditions.

As part of the RO e-Transport system, the road transport operator is required to equip its transport vehicles with telecommunication terminal devices that use satellite positioning and data transmission technologies to ensure the provision of real-time positioning data for the transport vehicle for the entire duration of the shipment of goods subject to monitoring through the RO e-Transport System (these provisions do not apply if the positioning data of the transport vehicle is already transmitted by its own devices).

Regarding the applicable sanctions for the administrative offences:

• the incremental penalties system is applicable (the penalties are applied considering the number of offences and the period in which they were committed) and sanctions are documented in the digital register of penalties imposed – to which the competent authorities have access;
• the complementary penalty of confiscation of the value of the goods for failure to declare information in RO e-Transport system will no longer apply where verifications are performed after the road transport of goods has been completed and the goods in question have been recorded in the supporting documents for the accounting entries or in users’ accounts, as the case may be, for the period to which the respective operations refer.