A company may apply the special exemption scheme while it meets the legal conditions and does not exceed the threshold. VAT registration may become mandatory or be requested voluntarily.
The VAT registration threshold
The exemption threshold is 395.000 RON.
If a company exceeds this threshold, it must apply for registration no later than the date it is exceeded. The normal VAT regime applies from the transaction that causes the threshold to be exceeded.
A company may also apply for voluntary registration before reaching the threshold if this is suitable for its activity.
The main VAT rates
The standard VAT rate is 21%.
Certain goods and services specified in the Fiscal Code are subject to a reduced rate of 11%. Some transactions are also exempt from VAT or subject to special rules.
The correct rate depends on the specific nature of the goods or services, not merely the general sector in which the company operates.
What should be assessed before registration?
- the type of customers and suppliers;
- the value of investments and purchases;
- the ability to deduct VAT;
- the impact of VAT on the final price;
- intra-Community or international transactions.
Even if a company is not registered under the normal VAT regime, a special VAT number may be required for certain intra-Community transactions.
Need a VAT assessment?
We check your company’s circumstances and explain the applicable obligations before registration.
Contact us