Romanian VAT rates and VAT compliance

Romanian VAT rates

Companies are directly responsible for determining and charging the correct Romanian VAT rates.  These are set by the government, although the EU set the broad rules for use of the standard, higher rate and reduced rates.  The EU does insist that the standard rate is at least 15%.

The current rates are:

Romania VAT rates

Rate Type Which goods or services
19% Standard All other taxable goods and services
9% Reduced Foodstuffs; pharmaceutical products; medical equipment for disabled persons; hotel accommodation; water supplies; some beer; soft drinks; cut flowers and plants for food production; some agricultural supplies; some goods and services for consumption on-board transportation. 
5% Reduced Social housing; books (excluding e-books); newspapers and periodicals; admission to cultural events; admission to sporting events; admission to amusement parks; hotel accommodation; restaurants and catering services (excluding some alcoholic beverages); take-away food; bars, cafes and nightclubs (excluding some alcoholic beverages); Residential properties
0% Zero Intra-community and international passenger transport

Romanian VAT compliance

If a foreign company is providing goods or services under a Romanian VAT number, it must comply with the accounting and reporting rules as set out in the Tax Code.  This includes:

  • Preparation of invoices with the disclosure requirements stipulated by the Tax Code
  • Compliance with the Romanian time of supply tax rules
  • Controls over the use, integrity and authentication of electronic invoices, including seeking agreement from customers
  • Up-keep of books and records, which must be held for at least ten years
  • Processing of credit notes and other corrections
  • Use of approved foreign currency rates

What is the tax point for Romanian VAT?

The tax point (time of supply) rules in Romania determine when the VAT is due.  It is then payable to the tax authorities 15 days after the VAT reporting period end (monthly or quarterly).

For most goods, it is the time of delivery or passage of title.  For services, it is the completion of the service.

Need help with your Romanian VAT compliance?

Researching Romanian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.