Romanian VAT Rates and VAT Compliance

The complex landscape of Romanian VAT rates and compliance represents a significant area of focus for businesses engaged in trade activities within this European Union member state.

The Romanian government, in accordance with EU guidelines, has established a standard VAT rate of 19% that is applicable to most taxable goods and services, along with certain reduced rates for specified items.

Foreign enterprises operating within this jurisdiction must adhere to stringent accounting and reporting procedures, a requirement that necessitates a thorough understanding of the VAT system.

The upcoming discussion will provide an in-depth exploration of these complexities, which will be instrumental in comprehending the intricacies of VAT compliance and its implications for business operations in Romania.

Key Takeaways

  • The standard VAT rate in Romania is 19%, but there are reduced rates for specific goods and services.
  • Foreign companies operating under a Romanian VAT number must comply with accounting and reporting rules.
  • The tax point rules determine when VAT is due in Romania, with payments being made 15 days after the reporting period ends.
  • Businesses can seek assistance with Romanian VAT compliance from companies like Avalara who offer solutions and services.


In the context of Romanian VAT Rates and Compliance, the overview will articulate a concise summary of VAT rates and outline the compliance guidelines.

A critical analysis of government-set rates, compliance obligations for foreign companies, and the tax point rules will be provided.

Moreover, we will touch upon the solutions offered by entities like Avalara to assist businesses in complying with Romanian VAT regulations.

Romanian VAT Rates Summary

The standard Romanian VAT rate, currently positioned at 19%, applies broadly across all taxable goods and services. Specific categories such as foodstuffs, pharmaceutical products, and hotel accommodation benefit from reduced rates of 9% and 5%.

This demonstrates the government’s considered approach to taxation. A taxable person must understand their VAT obligations, register for VAT purposes, comply with VAT returns, and adhere to the guidance provided by the Romanian tax authorities.

VAT Compliance Guidelines

Navigating the complexities of VAT compliance in Romania necessitates a thorough understanding of the country’s accounting and reporting rules, particularly for foreign companies operating under a Romanian VAT number.

Compliance guidelines include correct VAT registration, accurate VAT return, and adherence to VAT rules. The standard and reduced rate apply on various goods and services.

A tax representative assists in ensuring adherence to these guidelines, ensuring full compliance.

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Frequently Asked Questions

How Does VAT Work in Romania?

VAT in Romania is a tax on consumption, charged on most goods and services. Its standard rate is 19%. Companies must comply with specific accounting and reporting rules, with due dates based on tax point rules.

What Is the VAT Act in Romania?

The VAT Act in Romania defines the regulations for value-added tax application. It covers aspects such as VAT rates, compliance requirements, liability, and registration. It is vital for companies to understand these rules for their fiscal responsibilities.

Is VAT Rate 24% in Romania?

No, the VAT rate in Romania is not 24%. The standard VAT rate currently stands at 19%. However, there are reduced rates of 9% and 5% for specific goods and services as per Romanian legislation.

What Is the VAT Rate in Romania 2023?

The standard VAT rate in Romania for 2023 is 19%. Additionally, reduced rates of 9% and 5% apply to specific goods and services. Entities exceeding a turnover of RON 300,000 annually must register for VAT.


In conclusion, understanding and complying with Romanian VAT rates is essential for businesses operating within the country. The standard rate of 19% and the reduced rates apply to specific goods and services. Strict adherence to accounting rules, invoice preparation, and record keeping is required.

Companies must also understand tax point rules that dictate when VAT becomes due. Avalara offers solutions to assist businesses in navigating these complexities, highlighting the importance of VAT compliance in Romania.

Barry Caldwell

Barry Caldwell

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