What is a VAT refund?

A value added tax (VAT) refund is when VAT is reimbursed to companies at their request, when the amounts obtained from sales are smaller than the amounts obtained from purchases. Companies may claim a VAT refund when the deductible VAT is higher than the VAT collected. A VAT refund may be obtained from the State budget by filing either VAT return 300 or VAT return 318 (EU VAT refunds).

In Romania, VAT refunds are regulated by Law No 227/2015 of the Fiscal Code, as updated and amended.

How is the amount of VAT to be refunded calculated?

The amount of VAT to be refunded is calculated by determining the amounts resulting from taxes relating to purchases made by a taxable person and taxes collected for taxable transactions.

Who can claim a VAT refund?

Any taxable person registered for VAT purposes pursuant to Article 316 of the Fiscal Code may claim a VAT refund on a quarterly or monthly basis if there are negative amounts to be reimbursed.

This option can be selected in the VAT return, Form 300, which is also a request for reimbursement.

Taxable persons may claim a VAT refund in respect of the following categories of goods and services purchased:

• fuel;
• hiring of transport;
• road tolls and road user charges;
• travel expenses (taxi or public transport fares), accommodation, food, drink and restaurant services, admission to fairs and exhibitions, expenditure on luxuries, amusements and entertainment.

Non-taxable companies or companies having negative amounts below RON 5 000 cannot claim a VAT refund.

When is VAT reimbursed?

VAT is reimbursed, as a rule, within 45 or 90 days if the settlement of the VAT return also entails an advance check. The initial time limit may be extended for a period of 2 to 6 months if further evidence is required in order to decide on a request. During this period, the taxpayer cannot claim interest for the late VAT refund.

Taxpayers may check the status of the request for reimbursement and VAT returns on the ANAF website.