Romania’s value-added tax (VAT) system is important to understand for any business that sells in the country. Romanian VAT affects pricing, invoicing, and compliance. Given the standard VAT rate of 21%, reduced rates for specific goods and services, and strict reporting rules, small missteps are possible.

Below, we’ll explain when the Romania VAT rate should be applied, how foreign businesses are treated, and what compliance looks like.

What’s in this article?

• What is the Romania VAT rate?
  
• What are the different Romania VAT rates?
  
• What is a Romanian VAT number?
  
• Which businesses need to register for VAT in Romania?
  
• How does VAT registration work in Romania for foreign businesses?
  
• What are the VAT compliance requirements in Romania?
  
• How do VAT refunds work in Romania?
  
• How Stripe Tax can help
  

What is the Romania VAT rate?

Romania’s standard VAT rate is 21% and applies to most goods and services sold in the country. Romania also applies reduced and zero rates for specific categories, and it exempts some transactions from the VAT system.

What are the different Romania VAT rates?

Romania applies multiple VAT rates depending on what’s being sold and how it’s classified under tax law. Here are the various Romanian VAT rates.

21% standard VAT rate

This is the default rate and applies to goods and services sold in Romania, including consumer products, professional services, alcohol, and high-sugar beverages.

11% reduced VAT rate

The 11% VAT rate applies to a tightly defined list of essential and socially prioritized goods and services, including food for human consumption, restaurant and catering services, prescription medicines, certain medical devices, books and printed or digital publications, hotel and accommodation services, water supply and sewage services, and specific agricultural inputs such as fertilizers, seeds, and irrigation water.

9% temporarily reduced housing rate

A limited 9% rate applies to qualifying residential property sales that meet strict value and size thresholds. This relief is transitional and scheduled to be phased out by July 31, 2026, unless extended by law.

0% VAT rate

This rate covers taxable transactions where no Romanian VAT is charged at the point of sale, but businesses can still recover VAT on related costs. The zero rate applies to exports outside the EU, intra-EU supplies to VAT-registered businesses, and international passenger transport.

VAT-exempt sales

Certain activities fall outside the VAT system entirely, which means no VAT is charged and input VAT cannot be reclaimed. These include financial services, insurance, healthcare, education, and some real estate transactions.

What is a Romanian VAT number?

A Romanian VAT number is the identifier that connects your business to the country’s VAT system and to the wider EU tax framework.

Romanian VAT numbers begin with the country prefix “RO” followed by a series of digits, and this full format is used for EU and international transactions.

Registered businesses must include their Romanian VAT numbers on invoices and receipts, along with the customer’s VAT number where applicable. The VAT number signals that a business is authorized to charge the tax, reclaim input VAT, and participate in intra-EU trade under VAT rules.

Romanian VAT numbers can be verified through the EU’s VAT Information Exchange System (VIES), which supports zero-rating and reverse charge treatment for eligible EU transactions.

Which businesses need to register for VAT in Romania?

Whether VAT registration is mandatory in Romania depends on where your business is established and how you operate in the country.

These are the major categories of VAT-obligated businesses:

• Romanian-established businesses: Businesses in Romania must register for VAT once their annual taxable turnovers exceed 395,000 Romanian lei (RON). Some companies choose to register earlier to be able to recover VAT on their expenses.

• Foreign businesses that sell in Romania: Businesses that aren’t established in Romania generally must register for VAT from their first taxable transaction, regardless of sales volume.

• EU distance sellers to Romania: EU-based businesses that sell goods to Romanian customers are subject to the EU-wide €10,000 cross-border sales threshold. Once it’s exceeded, Romanian VAT must be charged via local VAT registration or the One Stop Shop (OSS).

• Businesses that hold inventory in Romania: Any business that stores goods in Romania, including via third-party fulfillment or warehousing, is typically required to register for Romanian VAT before it makes local sales.

• Importers of goods into Romania: Businesses that import goods into Romania in their own names usually need to register for VAT to account for import VAT and reclaim it.

• Event organizers and on-site services: Businesses that charge admission to events, provide services to a physical location in Romania, or carry out installation or construction work often must register for VAT regardless of turnover.

How does VAT registration work in Romania for foreign businesses?

VAT registration in Romania requires businesses to submit documents, and non-EU entities have an extra step to clear. Here’s how registration works for foreign businesses:

• No establishment requirement: Foreign businesses can register for Romanian VAT without setting up a local company or permanent establishment if they’re making taxable sales in Romania.

• Registration authority: VAT registration is handled by Romania’s tax authority, the National Agency of Fiscal Administration. And applications are submitted to the dedicated office for nonresident taxpayers, typically through a local agent or electronic filing system.

• Required documentation: Businesses must provide incorporation documents, proof of business activity, identification details for directors, and information on planned Romanian transactions. Documents usually need to be translated into Romanian.

• Fiscal representative for non-EU businesses: Companies established outside the EU need to appoint a Romanian fiscal representative who acts as the point of contact with the tax authority.

• EU businesses and representation: EU-established businesses aren’t required to appoint a fiscal representative, although many still use local advisers to manage filings and correspondence.

• Timing and activation: Once it’s submitted, VAT registration is typically processed within a few weeks. Businesses shouldn’t carry out taxable transactions in Romania until the VAT number is officially issued.

• VAT number format: The Romanian VAT number, beginning with the “RO” country prefix, must be used on all future invoices and VAT filings.

What are the VAT compliance requirements in Romania?

Once you’re registered for VAT in Romania, compliance becomes an ongoing obligation. Here are the rules and deadlines:

• VAT return frequency: Typically, VAT-registered businesses file monthly VAT returns, while smaller businesses with turnovers under €100,000 could qualify for quarterly filing.

• Filing and payment deadlines: VAT returns and any VAT due must be submitted and paid by the 25th day of the month following the reporting period, whether it’s monthly or quarterly.

• Electronic filing requirement: All VAT returns are filed electronically through the Romanian tax authority’s systems, and amounts must be reported and paid in RON.

• VAT payments and penalties: Late filing or payment can lead to fixed fines, daily interest charges, and penalties that accumulate over time, making punctual compliance necessary.

• Recordkeeping rules: VAT-registered businesses must issue compliant VAT invoices, include VAT numbers and applicable rates, and retain VAT records for audit purposes for at least 10 years.

• EU reporting obligations: Businesses that make intra-EU transactions must submit EC Sales Lists, known locally as VIES statements. Those that exceed trade thresholds must file Intrastat declarations for goods movements within the EU.

• Audit and data reporting: Romania increasingly relies on digital reporting and audit tools, including Standard Audit File for Tax (SAF-T) requirements for certain taxpayers.

How do VAT refunds work in Romania?

When input VAT exceeds output VAT in a reporting period, Romanian businesses can request a refund through their VAT return or carry the credit forward to offset future liabilities. Refund claims are often reviewed by the tax authority and can prompt requests for invoices or supporting documentation, especially for recurring refunds and those that exceed 5,000 RON. Reviews or audits can extend the timeline before funds are released.

Foreign companies that are registered for VAT in Romania reclaim deductible input VAT through their Romanian VAT returns, following the same process as local companies.

EU-established businesses without Romanian VAT registration that incur Romanian VAT on eligible expenses can reclaim it through the EU VAT refund portal. They can submit claims via their home countries’ tax authorities by the annual deadline.

Non-EU companies without Romanian VAT registration can reclaim Romanian VAT under the non-EU refund procedure, subject to reciprocity rules and stricter documentation requirements, and typically through a local representative.

How Stripe Tax can help

Stripe Tax reduces the complexity of tax compliance so you can focus on growing your business. Stripe Tax helps you monitor your obligations and alerts you when you exceed a sales tax registration threshold based on your Stripe transactions. In addition, it automatically calculates and collects sales tax, VAT, and goods and services tax (GST) on both physical and digital goods and services—in all US states and in more than 100 countries.

Start collecting taxes globally by adding a single line of code to your existing integration, clicking a button in the Dashboard, or using our powerful application programming interface (API).

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions. After you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration or add tax collection with the click of a button in the Stripe Dashboard.

• Register to pay tax: Let Stripe manage your global tax registrations and benefit from a simplified process that prefills application details—saving you time and simplifying compliance with local regulations.

• Automatically collect tax: Stripe Tax calculates and collects the right amount of tax owed, no matter what or where you sell. It supports hundreds of products and services and is up-to-date on tax rules and rate changes.

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Learn more about Stripe Tax, or get started today.