Taxes in Europe Database v2
The 6th Title of the Fiscal Code, approved by Law no. 571/2003 with subsequent amendments and completions.
Romania has not implemented the optional provisions of Article 12 of Directive 2006/112/CE.
Romania applies, as an option, a special exemption scheme for small enterprises, whose annual turnover is no higher than 65,000 EUR. The threshold in equivalent national currency is 220,000 lei, at the conversion rate on the day of Romania’s accession.
The international transport of passengers is the transport for which either the point of arrival or the point of destination, or both, are located outside Romania. Place of supply of international passenger services is considered to be in Romania for the part of the journey performed within the country, called the national route.
A taxable person is any person that carries out, in an independent manner and regardless of the place, economic activities, whatever the purpose or the result of such activities. The taxable person who is established in Romania and who carries out or intends to carry out an economic activity which involves taxable operations and/or operations exempted from the tax with the right of deduction shall apply to be registered for VAT purposes at the competent fiscal body.
The following transactions shall be subject to VAT:
1. The operations that cumulatively fulfil the following conditions :
2. Import of goods performed in Romania by any person, if the place of import is Romania.
3. Intra-Community acquisition of goods, if the place of the acquisition is deemed to be in Romania.
For deliveries of goods and supplies of services, the taxable amount is the consideration. The consideration shall include everything received or to be received by the supplier whether from the customer or a third party, including price subsidies and other budgetary subsidies directly affecting the price. The tax base shall also include taxes, duties, levies and charges, if the law does not provide otherwise, excluding the VAT. The tax base shall also include incidental expenses such as commissions, packing expenses, transport costs etc., claimed by the supplier/provider from the purchaser or from the beneficiary. The price reductions, price discounts, rebates etc. shall be excluded from the tax base.
For the importation of goods, the taxable amount is the customs value of the goods, determined according to the customs legislation in force, to which are added any taxes, levies, duties and other charges due outside Romania as well as those due by reason of the importation of those goods into Romania, with the exception of the due VAT. The tax base shall also include incidental expenses, such as commission, packing, transport costs etc. incurred up to the first place of destination as well as those arising from transport to another place of destination in the Community if that place is known at the time the chargeable event occurs.
For an intra-Community acquisition, the taxable amount shall be established on the basis of the same elements as those used in order determine the taxable amount in case of delivery of the same goods within the territory of Romania.
The Fiscal Code provides the categories of operations exempted from VAT.
One of the categories covers supplies in respect of which no input tax may be deducted. These include, in particular:
The other category covers supplies for which input tax is deductible. These are for the most part exports or other similar operations, intra-Community supplies, international and intra-Community transport or special exemptions related to the international traffic of goods.
The tax which must be paid for a given period is determined by subtracting from the amount of tax due on taxable operations the amount of tax paid on purchases.
The right to deduct tax is subject to certain conditions and restrictions laid down by the law.
The deduction of VAT for the purchase of cars and car related supplies (for example fuel) and services (for example maintenance, repairs etc.) is limited to 50%, if the vehicle is not used exclusively for business purposes.
Romania implemented the optional provisions of the first subparagraph of article 167a of Directive 2006/112/EC. The right of deduction of a taxable person who applies the cash accounting scheme and whose VAT becomes chargeable in accordance with article 66 (b) of Directive 2006/112/EC shall be postponed until the VAT on the goods and services supplied to him has been paid to his supplier.
Starting on July 1, 2010, the standard VAT rate was increased from 19% to 24%.
- the delivery of prostheses of any type and accessories to them, with the exception of dental prostheses;- the delivery of orthopedic products;- the delivery of medicines for human use and veterinarian use;- the delivery of books, newspapers and magazines, school manuals, with the exception of those intended exclusively or substantially for publicity;- the right to admission to castles, museums, memorial houses, historical monuments, architectural and archaeological monuments, zoos, botanical gardens, fairs, exhibitions and similar cultural events or facilities, cinemas;- the supply of accommodation within the hotel sector or within sectors with a similar function, including the rental of land prepared for camping;- the supply bread, bakery products, bakery flour, wheat and rye;
By the 25th of the month that follows the tax period.
Taxable persons registered for VAT purposes are required for each tax period to pay to the State Budget the difference between the output tax and the input tax.
The fiscal period is the calendar month.
By way of derogation, the fiscal period is the calendar quarter for the taxable person who during the preceding calendar year realised a turnover from taxable operations and/or exempt operations with right of deduction and /or non taxable operations but which give right of deduction in Romania, not exceeding the ceiling of EUR 100,000, excepting the situation in which the taxable person made in the preceding calendar year one or more intra-Community acquisitions of goods.