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Measures List
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Measure Name
Date when measure came into force
Increasing VAT standard rate 2010/07/01
9% reduced rate applies for certain food products 2013/09/01
The cash accounting system became optional 2014/01/01
Results 1 - 3 of 3.

Generic Tax Name VAT
Tax name in the national language Taxa pe valoarea adaugata
Tax name in English Value Added Tax
Member State RO-Romania
Tax in force since 1993/07/01
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

The 6th Title of the Fiscal Code, approved by Law no. 571/2003 with subsequent amendments and completions.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope
Territories excluded (article 6 2006/112/EC)

-



Comments

Romania

 
Taxpayers
Included taxable persons doing occasional transactions (article 12 2006/112/EC)


Comments

Romania has not implemented the optional provisions of Article 12 of Directive 2006/112/CE.


Special scheme for SMEs (article 281 2006/112/EC and following) None
Exemption
Graduated relief
Turnover threshold: 65,000.00  EUR/Natcur
Comments

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.


Common Flat-rate scheme for farmers (article 295 2006/112/EC and following) None
All categories
Some categories
Flat rate compensation percentage (general):
Flat rate compensation percentage for forestry:
Flat rate compensation percentage for fisheries:
Comments

There is a special scheme on the following





Comments

Special derogations to continue to tax (annex X)




Comments

Special derogations to continue to exempt (annex X)













Comments


Comments

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.

 
Tax object and basis of assessment
The following items are regarded as supply of goods and hence taxed under VAT (article 14 - 15 2006/112/EC)




Comments

The following items are regarded as supply of goods and hence taxed under VAT (article 18 2006/112/EC)



Comments

By derogation to article 26 paragraph 1, the following item(s) are not regarded as supply of services and hence not subject to VAT (article 26(2) 2006/112/EC)


Comments

By application of article 27 of 2006/112/EC, the following item is treated as supply of services The supply by a taxable person of a service for the purposes of his business, where the VAT on such a service, were it applied by another taxable person, would not be wholly deductible
Comments


Comments

The following transactions shall be subject to VAT:

 

1. The operations that cumulatively fulfil the following conditions :

  • operations which are or are assimilated to a delivery of goods or a supply of services within the scope of the tax, made for consideration;
  • the place of delivery of goods or supply of services is deemed to be in Romania;
  • the delivery of goods or supply of services is made by a taxable person, acting as such;
  • the delivery of goods or supply of services results from one of the following economic activities: activities of producers, traders or service suppliers, including extractive and agricultural activities and free profession activities or activities assimilated to them. An economic activity also includes the exploitation of tangible or intangible goods for the purpose of obtaining incomes with a continuous character.

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.

 
Deductions, Allowances, Credits, Exemptions
Exempted sectors*

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:

  • operations of public interest such as the provision of hospital and medical treatment, educational activities, protection of children and youth, cultural services;
  • certain banking and financial transactions;
  • the hiring, concession, leasing or letting of immovable property;
  • delivery of buildings or parts thereof and the land on which they stand, as well as of any other lands. By way of exception, the exemption shall not apply for the supply of new constructions, of parts of new construction or of land destined for construction.

 

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.


Special Measures derogating from the normal VAT rules in accordance with Article 395 of Directive 2006/112/EC*
  • Authorization to limit to 50% the right to deduct the VAT on the purchase, intra-Community acquisition, importation, hire or leasing of motorized road vehicles as well as the VAT charged on expenditure where the vehicle is not used exclusively for business purposes;
  • Authorization to exempt from VAT taxable persons whose annual turnover is no higher than the equivalent national currency of EUR 65,000 at the conversion rate on the day of its accession to the European Union.


Comments

Deductions:

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.

 
Rate(s) Structure
Standard VAT rate Rate: 24.00 %
Comments

 Starting on July 1, 2010, the standard VAT rate was increased from 19% to 24%.


Reduced rate 1

(article 98 of Directive - Annex III of Directive)
Rate: 9.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments


Reduced rate 2

(article 98 of Directive - Annex III of Directive)
Rate: 5.00 % on full or part of the following items

Article 98(2) 2006/112/EC

Foodstuffs (including beverages but excluding alcoholic beverages) for human and animal consumption; live animals, seeds, plants and ingredients normally intended for use in the preparation of foodstuffs; products normally used to supplement foodstuffs or as a substitute for foodstuffs
Supply of water
Pharmaceutical products of a kind normally used for health care, prevention of illness and as treatment for medical and veterinary purposes, including products used for contraception and sanitary protection
Medical equipment, aids and other appliances normally intended to alleviate or treat disability, for the exclusive personal use of the disabled, including the repair of such goods, and supply of children's car seats
Transport of passengers and their accompanying luggage
Supply, including on loan by libraries, of books on all physical means of support (including brochures, leaflets and similar printed matter, children's picture, drawing or colouring books, music printed or in manuscript form, maps and hydrographic or similar charts), newspapers and periodicals, other than material wholly or predominantly devoted to advertising
Admission to shows, theatres, circuses, fairs, amusement parks, concerts, museums, zoos, cinemas, exhibitions and similar cultural events and facilities
Reception of radio and television broadcasting services
Supply of services by writers, composers and performing artists, or of the royalties due to them
Provision, construction, renovation and alteration of housing, as part of a social policy
The renovation and repair of private dwellings, excluding materials which account for a significant part of the value of the service supplied
Window cleaning and cleaning in private households
Supply of goods and services of a kind normally intended for use in agricultural production but excluding capital goods such as machinery or buildings
Accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of places on camping or caravan sites
Restaurant and catering services, it being possible to exclude the supply of (alcoholic and/or non-alcoholic) beverages
Admission to sporting events
Use of sporting facilities
Supply of goods and services by organisations recognised as being devoted to social wellbeing by Member States and engaged in welfare or social security work, in so far as those transactions are not exempt pursuant to Articles 132, 135 and 136
Supply of services by undertakers and cremation services, and the supply of goods related thereto
Provision of medical and dental care and thermal treatment in so far as those services are not exempt pursuant to points (b) to (e) of Article 132(1)
Supply of services provided in connection with street cleaning, refuse collection and waste treatment, other than the supply of such services by bodies referred to in Article 13
Minor repairs of bicycles
Minor repairs of shoes and leather goods
Minor repairs of clothing and household linen (including mending and alteration)
Domestic care services such as home help and care of the young, elderly, sick or disabled
Hairdressing

Article 102 2006/112/EC

Supply of natural gas
Supply of electricity
Supply of district heating

Article 103(1) 2006/112/EC

Pictures, collages and similar decorative plaques, paintings and drawings, executed entirely by hand by the artist, other than plans and drawings for architectural, engineering, industrial, commercial, topographical or similar purposes, hand-decorated manufactured articles, theatrical scenery, studio back cloths or the like of painted canvas (CN code 9701)
Original engravings, prints and lithographs, being impressions produced in the limited numbers directly in black and white or in colour of one or of several plates executed entirely by hand by the artist, irrespective of the process or of the material employed, but not including any mechanical or photomechanical process (CN code 9702 00 00)
Original sculptures and statuary, in any material, provided that they are executed entirely by the artists.
Sculpture casts the production of which is limited to eight copies and supervised by the artist or his successors in title (CN code 9703 00 00); on an exceptional basis, in cases determined by the Member States, the limit of eight copies may be exceeded for statuary casts produced before 1 January 1989
Tapestries (CN code 5805 00 00) and wall textiles (CN code 6304 00 00) made by hand from original designs provided by artists, provided that there are not more than eight copies of each
Individual pieces of ceramics executed entirely by the artist and signed by him
Enamels on copper, executed entirely by hand, limited to eight numbered copies bearing the signature of the artist or the studio, excluding articles of jewellery and goldsmith's and silversmith's wares
Photographs taken by the artist, printed by him or under his supervision, signed and numbered and limited to 30 copies, all sizes and mounts included
Postage or revenue stamps, postmarks, first-day covers, pre-stamped stationery and the like, used, or if unused not current and not intended to be current (CN code 9704 00 00)
Collections and collector's pieces of zoological, botanical, mineralogical, ethnographic or numismatic interest (CN code 9705 00 00)
Goods, other than works of art or collector's items, which are more than 100 years old (CN code 9706 00 00)
Comments


Special reduced VAT rate for specific regions (including articles 104 and 105 2006/112/EC) Rate:
Regions
Comments

Special provisions under article 110 2006/112/EC (existing provisions prior to 1991):No

Special provisions under articles 111 2006/112/EC:No

Special provisions under articles 112 2006/112/EC:No

Special provisions under articles 113 2006/112/EC:No

Special provisions under articles 114 2006/112/EC:No

Special provisions under articles 115 2006/112/EC:No

Special provisions under articles 116 2006/112/EC:No

Special provisions under articles 117 2006/112/EC:No

Special provisions under articles 118 2006/112/EC:No

Special provisions under articles 119 2006/112/EC:No

Special provisions under articles 120 2006/112/EC:No

Special provisions under articles 121 2006/112/EC:No

Special provisions under articles 122 2006/112/EC:No


Comments
  • The 9% reduced rate applies to the taxable amount for the following supplies of services and/or deliveries of goods:

- 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;

  • The reduced 5% rate applies to the taxable amount for the supply of dwelling as part of the social policy, including of the land upon which these are constructed.
 
Tax due date

By the 25th of the month that follows the tax period.

 
Tax collector

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.

 
Special features
  • The tax for the imports of goods, with the exception of those which are exempt from the VAT shall be paid to the customs authorities, in accordance with the rules in force concerning import duties payment. By way of exception, some categories of taxable persons identified for VAT purposes shall record the VAT related to imported goods in the tax return, both as collected tax and deductible tax.
  • Reverse charge applies to the following supplies of goods/ services inside the country:
    • the supply of ferrous and non-ferrous waste and scrap;
    • the supply of wood material and wooden materials;
    • the supply of some cereals and technical plants;
    • the transfer of greenhouse gas emissions certificates;
    • the supply of electricity to a taxable dealer;
    • the transfer of green certificates.
 
Economic function







Comments
 
Environmental taxes



Comments
 
Tax revenue
ESA95 code d211a

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 11,069.76 EUR 8.29
2011 11,272.63 EUR 8.46
2010 9,358.96 EUR 7.38
2009 7,711.55 EUR 6.40
2008 10,869.98 EUR 7.63
2007 9,915.60 EUR 7.91
2006 7,740.77 EUR 7.87
2005 6,439.28 EUR 8.03
2004 4,074.72 EUR 6.64
2003 3,780.72 EUR 7.14
2002 3,448.80 EUR 7.07
2001 2,830.49 EUR 6.22
2000 2,632.92 EUR 6.45

Comments