When Do You Need to Register for VAT in Romania?

Introduction: Why VAT Registration Is a Critical Business Decision

Value Added Tax is one of the first fiscal realities that every business operating in Romania must understand. Whether you are a Romanian SRL in its first year of trading, a foreign entrepreneur launching an e-commerce operation, an IT consultancy invoicing clients across the EU, or a property investor acquiring commercial real estate in Bucharest — the question of when and whether you need to register for VAT affects your pricing, your cash flow, your compliance obligations, and your competitive position.

Romania’s VAT system is fully harmonised with the EU VAT Directive. It is administered by ANAF (Agenția Națională de Administrare Fiscală — the National Agency for Fiscal Administration), and it applies to the supply of goods and services carried out in Romania by taxable persons acting as such. The system distinguishes between mandatory registration — triggered when turnover exceeds a defined threshold or when certain types of transactions occur — and voluntary registration, which may be advantageous even for businesses well below the threshold.

Mistakes in VAT registration are among the most common and most expensive errors that foreign-owned businesses make in Romania. Registering too late triggers penalties and back-assessments. Failing to register at all when the law requires it creates a compounding liability. Registering voluntarily without understanding the obligations can burden a small business with monthly filing requirements and cash-flow consequences it did not anticipate. And misunderstanding the cross-border rules — reverse charge, intra-Community supplies, OSS, IOSS — leads to double taxation, lost input VAT recovery, or enforcement action in multiple jurisdictions.

This guide covers every dimension of VAT registration in Romania: who must register, when, how, and what comes after. It is written for foreign entrepreneurs, international companies, e-commerce sellers, freelancers, and investors who need a clear, practical understanding of the Romanian VAT landscape in 2026.

What Is VAT in Romania?

Value Added Tax (TVA — Taxa pe Valoarea Adăugată in Romanian) is a consumption tax levied on the value added at each stage of the supply chain. The end consumer bears the economic burden, but it is businesses that collect, report, and remit the tax to the state. Romania’s VAT system operates under the EU VAT Directive (Council Directive 2006/112/EC), meaning the core rules — taxable transactions, place of supply, exemptions, and cross-border mechanisms — are aligned across all 27 EU member states.

Every VAT-registered business in Romania charges output VAT on its sales and deducts input VAT on its purchases. The difference is remitted to ANAF (if output exceeds input) or claimed as a refund or carried forward (if input exceeds output). A Romanian VAT identification number takes the format RO followed by digits — for example, RO12345678. This number must appear on every VAT invoice issued by the business.

Taxable supplies include most sales of goods and services made in Romania for consideration by a taxable person acting in that capacity. This covers physical goods, professional services, digital services, licensing of intellectual property, construction work, leasing, consulting, and virtually every other commercial activity.

Exempt supplies are transactions that fall outside the scope of VAT or are specifically exempted by law. Key exemptions include most financial and insurance services, certain medical and educational services, and (with important exceptions) the sale and leasing of residential property. Exempt supplies do not generate output VAT, and the input VAT incurred in making those supplies is generally not recoverable.

Who Must Register for VAT in Romania?

VAT registration in Romania can be either mandatory or voluntary. The rules differ depending on whether the business is a Romanian entity, an EU-based company, or a non-EU company.

Romanian SRLs and Other Business Entities

A Romanian SRL (societate cu răspundere limitată — limited liability company) must register for VAT when its taxable turnover exceeds the registration threshold, or when it carries out transactions that require VAT registration regardless of turnover. The same rules apply to other Romanian legal forms — SA (joint-stock company), SNC (general partnership), and branches of foreign companies registered in Romania.

Sole Traders and Authorised Individuals (PFA)

A PFA (persoană fizică autorizată) or an individual enterprise (întreprindere individuală) is also a taxable person for VAT purposes. If the PFA’s turnover from taxable supplies exceeds the threshold, VAT registration is mandatory. Many freelancers and independent professionals in Romania operate as PFAs, and the VAT threshold question is one of the most common issues they face.

Foreign Companies Operating in Romania

A foreign company — whether EU-based or non-EU — may be required to register for VAT in Romania if it carries out taxable transactions in Romania. The obligation arises from the nature of the transactions, not from whether the company has a Romanian subsidiary. A German GmbH selling goods stored in a Romanian warehouse, a French SAS providing on-site construction services in Bucharest, or an American LLC importing goods through Romanian customs may all trigger a Romanian VAT registration obligation.

EU Businesses

EU businesses benefit from the intra-Community framework. In many cases, the reverse-charge mechanism shifts the VAT obligation to the Romanian customer, and the EU supplier does not need to register in Romania. However, there are important exceptions: if the EU business has a fixed establishment in Romania, stores goods in Romania, or makes supplies to Romanian consumers that exceed certain thresholds and are not covered by the OSS scheme, Romanian VAT registration may be required.

Non-EU Businesses

Non-EU businesses that make taxable supplies in Romania generally must register for VAT and appoint a fiscal representative in Romania. The fiscal representative is jointly liable for the VAT obligations, which makes finding a willing representative a practical challenge. This requirement does not apply to businesses from countries with which Romania has a mutual assistance agreement for VAT recovery.

The Romanian VAT Registration Threshold

The VAT registration threshold in Romania is RON 300,000 (approximately €60,000 at the official exchange rate, or roughly €88,500 at the commonly used approximate rate of 1 EUR ≈ 5 RON). This figure is the ceiling for the special exemption regime for small enterprises. A business whose taxable turnover in a calendar year does not exceed this amount may choose to remain exempt from VAT — meaning it does not charge VAT, does not file VAT returns, and cannot recover input VAT.

• What counts toward the threshold. The threshold is calculated on the basis of taxable supplies, including reduced-rate and zero-rated supplies but excluding exempt supplies (such as exempt financial or insurance services). Intra-Community acquisitions, imports, and supplies subject to the reverse-charge mechanism are generally excluded from the calculation. The turnover is measured on a calendar-year basis.
• Monitoring throughout the year. The obligation to register arises the moment the threshold is exceeded during the calendar year — not at year-end. If a business reaches RON 300,000 of taxable turnover in July, it must apply for VAT registration within ten days and begins charging VAT from the first day of the month following the one in which the threshold was exceeded. In practice, this means businesses must monitor their cumulative taxable turnover continuously.

Can You Register for VAT Voluntarily?

Yes. Any taxable person in Romania can apply for voluntary VAT registration at any time, even if their turnover is well below the RON 300,000 threshold. Voluntary registration is a strategic decision that makes sense in some circumstances and creates unnecessary burden in others.

Benefits of Voluntary Registration

• Recovery of input VAT. A VAT-registered business can deduct the VAT paid on purchases, services, imports, and capital investments. For businesses with significant start-up costs, equipment purchases, or high-value inputs, voluntary registration can result in substantial VAT refunds that improve cash flow.
• Credibility with B2B clients. Many businesses — especially larger companies and multinationals — prefer to work with VAT-registered suppliers. A VAT number signals a certain level of establishment and compliance. In some sectors, not having a VAT number is a practical barrier to winning contracts.
• Cross-border trade facilitation. VAT registration is a prerequisite for intra-Community transactions. A business that wants to buy goods from EU suppliers under the intra-Community acquisition regime, or to sell goods to EU business customers under the intra-Community supply regime, must be VAT-registered.

Potential Disadvantages

• Administrative burden. A VAT-registered business must file regular VAT returns (monthly or quarterly depending on turnover), maintain detailed VAT records, issue compliant VAT invoices, and keep its books in a form that satisfies ANAF audit requirements. For a small business with simple operations, this overhead may outweigh the benefits.
• Price competitiveness with end consumers. If a business sells primarily to individuals (B2C), adding 19% VAT to its prices makes it less competitive against non-registered competitors who are exempt. This is a real consideration for small retailers, freelancers selling to individuals, and service providers in price-sensitive consumer markets.
• Minimum registration period. Once voluntarily registered, a business must remain VAT-registered for a minimum period. Cancelling VAT registration before this period expires requires demonstrating that conditions have changed materially.

When Foreign Companies Must Register for VAT in Romania

Foreign companies — whether EU-based or from third countries — must register for VAT in Romania when they carry out certain taxable transactions on Romanian territory. The main triggers are:

• Selling goods located in Romania. If a foreign company stores goods in Romania (in its own warehouse, a third-party logistics centre, or an Amazon fulfilment centre) and sells them to Romanian customers, it is making a taxable supply in Romania and must be VAT-registered.
• Providing taxable services where the place of supply is Romania. Under the general rule, B2B services are taxed where the customer is established (and the reverse charge applies). But certain services — notably those connected with immovable property in Romania, restaurant and catering services physically performed in Romania, and short-term vehicle rental in Romania — are taxed at the place of performance, which may require the foreign supplier to register.
• Importing goods into Romania. A foreign company that imports goods through Romanian customs is liable for import VAT. Registration is required to account for this and, critically, to recover the import VAT as input VAT.
• Warehousing goods in Romania under call-off stock arrangements. The call-off stock simplification allows an EU supplier to move goods to a warehouse in Romania without triggering an immediate intra-Community acquisition, provided a specific customer is identified and certain conditions are met. If the conditions are not satisfied — or if the goods are not dispatched within twelve months — a Romanian VAT registration may be required.
• Construction and installation projects. A foreign company that carries out construction, assembly, or installation projects in Romania may create a fixed establishment for VAT purposes, triggering a registration obligation.

VAT Registration for Cross-Border Services

Cross-border services are one of the most complex areas of EU VAT, and Romania applies the standard EU rules. The key concept is the place of supply, which determines in which country the VAT is due.

The General Rule: B2B Services

When a service is supplied to a business customer (a taxable person), the place of supply is where the customer is established. This means that if a Romanian IT company provides consulting services to a German client, the place of supply is Germany, and the reverse-charge mechanism applies: the German client accounts for the VAT in Germany. The Romanian company does not charge Romanian VAT.

The General Rule: B2C Services

When a service is supplied to a non-taxable person (a private individual), the place of supply is generally where the supplier is established. If the same Romanian IT company provides services to an individual in Germany, the place of supply is Romania, and Romanian VAT applies — unless the service falls into one of the special categories (digital services, telecommunications, broadcasting) that follow different rules.

The Reverse-Charge Mechanism

The reverse charge is a fundamental feature of EU VAT for cross-border B2B transactions. Instead of the supplier charging VAT in its country and the customer reclaiming it across borders — which would be administratively impractical — the obligation to account for the VAT shifts to the customer. The customer self-assesses the VAT on the received supply and simultaneously claims it as input VAT (if fully entitled to deduction). The net cash effect is zero, but both the output and input sides must appear in the VAT return.

A Romanian company receiving services from an EU supplier must apply the reverse charge: it includes the VAT due on the purchase in its VAT return as output VAT (box for reverse-charge acquisitions) and, if entitled, deducts the same amount as input VAT. This applies to most B2B services — consulting, IT, marketing, legal, management, licensing — received from suppliers in other EU member states.

Intra-Community Services and Recapitulative Statements

A Romanian VAT-registered business providing services to VAT-registered customers in other EU member states must report these transactions in a recapitulative statement (declarația recapitulativă — form 390 VIES). This is a reporting obligation, not a payment obligation, but failure to file it correctly can trigger penalties and raise flags with ANAF.

VAT Rules for Selling Goods Across the EU

Intra-Community Supplies

When a VAT-registered Romanian company sells goods to a VAT-registered business in another EU member state, and the goods are physically transported from Romania to that member state, the transaction qualifies as an intra-Community supply. It is zero-rated in Romania — the Romanian seller charges 0% VAT — provided the seller can prove that the goods left Romania (transport documents, CMR, shipping records) and that the buyer has a valid EU VAT number (verified through the VIES system).

Intra-Community Acquisitions

Conversely, when a Romanian VAT-registered business purchases goods from a VAT-registered supplier in another EU member state, and the goods are transported to Romania, the transaction is an intra-Community acquisition. The Romanian buyer self-assesses Romanian VAT on the acquisition (reverse charge) and, if entitled, deducts it as input VAT.

Distance Selling and B2C Cross-Border Sales

When a business sells goods to consumers (non-taxable persons) in other EU member states — a model that is central to e-commerce — the rules changed fundamentally with the introduction of the One Stop Shop (OSS) regime. Before OSS, distance sellers had to monitor country-by-country thresholds and register for VAT in each member state where the threshold was exceeded. Under OSS, a single registration in the home member state covers VAT obligations across the entire EU for these sales. This is covered in detail in the OSS section below.

VAT Registration for E-Commerce Businesses

E-commerce has created a set of VAT challenges that traditional business models did not face. The EU has responded with specific rules, and Romania applies them in full.

• Online stores selling from Romania. A Romanian e-commerce business selling goods to consumers in other EU member states must charge VAT. If total cross-border B2C sales to all other EU member states exceed €10,000 per year, the business must either register for VAT in each destination country or register for the OSS scheme in Romania and report all such sales through a single quarterly OSS return.
• Amazon FBA sellers. Amazon’s Fulfilment by Amazon programme stores sellers’ inventory in Amazon warehouses across multiple EU countries. If your goods are stored in Romania — even if you did not specifically choose Romania as a storage location — you may have a VAT registration obligation in Romania, because the supply of goods from a Romanian warehouse to a Romanian customer is a domestic supply in Romania. Conversely, if you are a Romanian seller whose goods are stored in Germany, France, or Poland by Amazon, you may need VAT registration in those countries.
• Marketplace sellers. Under the deemed-supplier rules, online marketplaces (Amazon, eBay, Etsy, and others) are deemed to be the supplier for VAT purposes in certain situations — principally when facilitating sales by non-EU sellers to EU consumers, or sales of goods imported in consignments not exceeding €150. When the marketplace is the deemed supplier, it collects and remits the VAT. However, the underlying seller may still have VAT obligations depending on where inventory is stored and the nature of the supply chain.
• Dropshipping. Dropshipping businesses face particular VAT complexity. The supply chain typically involves three parties: the end customer, the dropshipper (who takes the order), and the actual supplier (who ships the goods). The VAT treatment depends on where the goods are located at the time of sale, whether the supplier is inside or outside the EU, and whether the goods pass through customs. Many dropshipping models involving non-EU suppliers and direct shipment to EU customers trigger import VAT obligations.
• Digital services. Businesses selling digital services (software, streaming, e-books, online courses, SaaS subscriptions) to consumers across the EU follow special place-of-supply rules. The supply is taxed where the consumer is located, not where the supplier is established. OSS is the standard compliance mechanism for this type of sale.

OSS and IOSS: Simplifying VAT Across Europe

One Stop Shop (OSS)

The One Stop Shop is an EU-wide simplification that allows businesses to report and pay VAT on cross-border B2C sales of goods and services through a single electronic portal in their home member state. For a Romanian business, this means registering for OSS through the ANAF online portal and filing a single quarterly OSS return that covers all B2C sales to consumers in all other EU member states. The VAT is charged at the rate applicable in the consumer’s country, but it is all reported and paid through the Romanian OSS return.

OSS eliminates the need to register for VAT in every EU country where the business has customers — a transformative simplification for e-commerce sellers, digital service providers, and any business with a pan-European B2C customer base.

Import One Stop Shop (IOSS)

The IOSS scheme applies to distance sales of goods imported from outside the EU in consignments with an intrinsic value not exceeding €150. A business registered for IOSS collects the VAT from the customer at the point of sale (at the rate applicable in the destination member state) and remits it through a single monthly IOSS return. The goods then clear customs without import VAT being charged — eliminating the delivery delays and unexpected charges that previously plagued low-value imports.

IOSS registration in Romania is available to EU-established businesses and, through an intermediary, to non-EU businesses. It is particularly relevant for e-commerce businesses sourcing products from non-EU countries (China, the UK post-Brexit, the US) and selling directly to EU consumers.

When OSS or IOSS Do Not Apply

OSS covers B2C distance sales of goods and cross-border B2C services. It does not cover B2B transactions, domestic sales, or supplies that are exempt from VAT. IOSS is limited to imported goods in consignments not exceeding €150. Goods above this value follow the standard import VAT procedure. Businesses with complex supply chains — involving warehousing in multiple countries, B2B and B2C mixed models, or high-value imports — may still need VAT registrations in multiple member states alongside their OSS or IOSS registration.

VAT on Imports and Exports

Import VAT

Goods imported into Romania from outside the EU are subject to import VAT at the point of customs clearance. The taxable amount is the customs value of the goods plus any customs duties, excise duties, and ancillary costs (transport, insurance) incurred up to the first destination in Romania. The standard 19% rate applies unless the goods qualify for a reduced rate.

A VAT-registered importer can recover import VAT as input VAT through its regular VAT return, subject to the normal deduction rules. A non-registered importer pays the import VAT as a final cost — there is no recovery mechanism. This is one of the strongest arguments for voluntary VAT registration for businesses that import goods regularly.

EORI Number

Any business that imports or exports goods through EU customs must have an EORI (Economic Operators Registration and Identification) number. In Romania, the EORI number is issued by the customs authority and is required before any customs declaration can be submitted. For a Romanian SRL, the EORI is typically based on the company’s CUI (unique identification code) prefixed with RO.

Exporting Goods Outside the EU

Exports of goods from Romania to destinations outside the EU are zero-rated — the supplier charges 0% VAT. The right to deduct input VAT on costs related to the export is fully preserved. To apply the zero rate, the exporter must hold proof that the goods have left the EU customs territory — typically the export customs declaration (stamped by customs or confirmed electronically in the Romanian customs system).

VAT and Real Estate Transactions in Romania

Real estate is one of the most nuanced areas of Romanian VAT law. The VAT treatment depends on the type of property, whether it is new or old, and the nature of the transaction.

• New buildings. The sale of a new building (or a part of a building, such as an apartment) is subject to VAT at the applicable rate. A building is considered new if it is delivered on or before 31 December of the year following the year in which it was first occupied or used. The standard rate of 19% applies to commercial property. Residential property that meets certain criteria (floor area up to 120 square metres, value up to RON 600,000) may qualify for the reduced 5% rate.
• Old buildings. The sale of a building that is no longer new (more than one year after first occupation) is exempt from VAT by default. However, the seller may opt to tax the transaction if the buyer is a taxable person. This option is important in commercial real estate, where the buyer typically prefers to receive a VAT invoice so that it can deduct the input VAT.
• Land. The sale of buildable land is subject to VAT at the standard rate. The sale of agricultural land or non-buildable land is exempt.
• Leasing commercial property. Leasing (rental) of commercial property is exempt from VAT by default, but the landlord may opt to charge VAT. In practice, most commercial landlords in Romania choose to charge VAT because it allows them to recover input VAT on construction, renovation, and maintenance costs.
• Property developers. Developers who construct and sell residential or commercial property are carrying out taxable activities and must be VAT-registered. The VAT treatment of each sale depends on the type and value of the property and whether the buyer qualifies for the reduced rate.
• Foreign property investors. A foreign individual or company purchasing commercial property in Romania should consider the VAT implications carefully. If the property is acquired as a taxable supply (with VAT), the investor needs to be VAT-registered to recover the input VAT. If the intention is to lease the property with VAT, ongoing VAT registration and compliance are necessary.

Romanian VAT Rates Explained

Romania applies three positive VAT rates and a zero rate:

How to Register for VAT in Romania

Mandatory Registration (Threshold Exceeded)

When a business’s taxable turnover exceeds RON 300,000 in a calendar year, it must submit a VAT registration application (form 088 and the registration declaration form 010 or 070) to ANAF within ten working days after the end of the month in which the threshold was exceeded. VAT registration takes effect from the first day of the month following the month in which the threshold was exceeded.

Voluntary Registration

A business may apply for voluntary VAT registration at any time by submitting the same forms (088 and 010/070) to ANAF. ANAF conducts a risk assessment before approving voluntary registrations — the form 088 questionnaire evaluates the business’s premises, economic activity, director’s tax history, and other criteria. In practice, ANAF may reject voluntary registration applications if the risk assessment score is negative, particularly for newly formed companies with no trading history or no identifiable business premises.

Documents Required

The exact documentation varies by case, but typically includes the VAT registration declaration (form 010 or 070), the form 088 questionnaire, proof of the registered office (lease agreement or ownership title), the company’s articles of association, the director’s identity document, and evidence of economic activity (contracts, invoices, business plan). For foreign-owned companies, additional documents such as apostilled certificates of incorporation and directors’ passports may be required.

Processing Time

ANAF is required to process VAT registration applications within a defined period — typically up to 45 calendar days for voluntary registration. In practice, processing times vary. Mandatory registrations (threshold-triggered) are generally processed faster. Voluntary registrations are subject to the form 088 risk assessment, which can result in delays or rejection.

Receiving the VAT Number

Once approved, ANAF issues a certificate of VAT registration and assigns the VAT identification number. The number must be used on all invoices, VAT returns, and EU-related declarations from the effective date of registration.

Your VAT Obligations After Registration

VAT registration is not a one-time event — it creates an ongoing set of compliance obligations that must be met every reporting period.

• VAT invoices. Every taxable supply must be documented with a VAT invoice that includes all mandatory elements: seller’s and buyer’s names, addresses, and VAT numbers; invoice number and date; description of goods or services; quantity and unit price; VAT rate and amount; and the total including VAT. Electronic invoicing is increasingly standard and Romania is moving toward mandatory e-invoicing through the RO e-Factura system.
• VAT returns (decontul de TVA — form 300). VAT-registered businesses must file periodic VAT returns. The filing frequency depends on turnover: businesses with annual turnover above a defined threshold file monthly; those below it file quarterly. The return is due by the 25th of the month following the reporting period.
• Payment of VAT. Any VAT due must be paid by the same deadline as the VAT return — the 25th of the month following the reporting period. Late payment attracts interest and penalties.
• Recapitulative statement (form 390 VIES). Businesses making intra-Community supplies of goods or services must file a recapitulative statement listing each EU customer’s VAT number and the value of supplies. This is filed monthly by the 25th of the following month.
• SAF-T reporting. Romania has implemented SAF-T (Standard Audit File for Tax) reporting — the D406 declaration. Large and medium taxpayers are already required to submit SAF-T files; the obligation is being extended progressively to smaller taxpayers. SAF-T requires detailed electronic reporting of accounting data, including VAT transactions, in a standardised XML format.
• Record keeping. All VAT-related documents — invoices issued and received, import documents, contracts, bank statements — must be retained for the statutory period (generally ten years). Records must be available for ANAF inspection at any time.

Common VAT Registration Mistakes

• Registering too late. This is the most frequent and most costly mistake. A business that exceeds the RON 300,000 threshold and does not register within the required timeframe faces penalties, and ANAF may assess VAT on all supplies made during the unregistered period without allowing input VAT deduction for the same period.
• Miscalculating taxable turnover. Businesses sometimes include exempt income or exclude taxable income when calculating their turnover against the threshold. The threshold is based on taxable supplies only, but all taxable supplies (including zero-rated ones) count. Getting the calculation wrong can mean missing the registration deadline.
• Applying incorrect VAT rates. Romania’s reduced rates apply to specific categories, and the boundaries are not always intuitive. Applying 9% to a product that should be taxed at 19%, or treating a taxable supply as exempt, creates a liability that ANAF will correct on audit — with interest and penalties.
• Incorrect invoicing. Invoices missing mandatory elements — VAT number, correct VAT rate, proper description — can result in the buyer’s input VAT deduction being denied. This creates friction with customers and exposes the seller to compliance risk.
• Ignoring reverse-charge obligations. A Romanian business receiving services from an EU supplier must self-assess the VAT through the reverse charge. Failing to do so means the transaction is not properly recorded, the VAT return is incorrect, and the business is exposed to penalties on audit.
• Failing to register for OSS when required. E-commerce businesses selling to consumers across the EU that exceed the €10,000 threshold must either register for OSS or register for VAT in each destination country. Ignoring this obligation creates a multi-country compliance problem.
• Poor bookkeeping. VAT compliance depends on accurate, timely bookkeeping. Businesses that fall behind on recording invoices, reconciling bank statements, or classifying transactions correctly will inevitably make errors in their VAT returns — and errors in VAT returns attract ANAF attention.
• Missing filing deadlines. VAT returns and payments are due by the 25th of the month following the reporting period. Late filing and late payment both attract penalties. For businesses new to Romanian tax compliance, establishing a calendar of deadlines from day one is essential.

Penalties for Non-Compliance

Romanian tax law imposes a graduated system of penalties for VAT non-compliance.

• Late registration. A business that fails to register for VAT when required may be registered ex officio by ANAF. VAT may be assessed on all supplies made during the unregistered period, and the right to deduct input VAT for that period may be denied.
• Administrative fines. Fines for VAT-related infractions range from several thousand to tens of thousands of RON, depending on the nature and severity of the violation. Common fined infractions include failure to issue VAT invoices, failure to file VAT returns, and failure to register within the required timeframe.
• Interest on unpaid VAT. Late payment of VAT attracts interest calculated from the due date until the date of payment. The interest rate is set by the Fiscal Procedure Code and is updated periodically.
• Tax audits. ANAF conducts both routine and targeted VAT audits. A VAT audit can cover up to five years of activity and may result in additional VAT assessments, denied input VAT deductions, interest, and penalties. Businesses with inconsistencies in their VAT returns, frequent late filings, or high refund claims are more likely to be selected for audit.
• Corrective actions. Businesses that identify errors in their VAT returns can file corrective declarations. Self-correction before an ANAF audit generally results in reduced penalties compared to errors discovered during an audit.

Practical Examples: Do You Need VAT Registration?

The following examples illustrate how the VAT registration rules apply to common business scenarios in Romania.

Frequently Asked Questions