Registration of taxable persons for VAT purposes

Taxable persons established in Romania

Taxable persons who have an established business in Romania and carry out or intend to carry out an economic activity involving taxable transactions exempted from value added tax and eligible for deduction and/or transactions resulting from economic activities for which the place of supply/provision is deemed to be abroad, if the VAT was deductible, where such transactions would be performed in Romania pursuant to Article 297(4) (b) and (d), must apply for registration for VAT purposes to the competent fiscal body, as follows.

• Before performing such transactions, in the following cases:

- if they declare that they are going to achieve a turnover reaching or exceeding the exemption threshold specified in Article 310(1) regarding the special exemption arrangements for small undertakings;

- if they declare that they are going to achieve a turnover below the exemption threshold specified in Article 310(1), but they opt to follow the normal tax arrangements;

• if during a calendar year they reach or exceed the exemption threshold specified in Article 310(1), within 10 days from the end of the month in which they reached or exceeded this threshold;
• if the turnover during a calendar year is lower than the exemption threshold of RON 300 000, but they opt to follow the normal tax arrangements;
• if they perform transactions exempted from VAT and opt for their taxation

Taxable persons established outside Romania

Taxable persons with a place of business established outside Romania but with a fixed establishment in Romania pursuant to Article 266(2)(b) must apply for registration for VAT purposes in Romania, as follows.

• Before receiving services, where they are to receive, for their fixed establishment in Romania, services subject to VAT in Romania pursuant to Article 207(2) if the services are provided by a taxable person established in another Member State for the purposes of Article 266(2);
• before providing services, where they are to provide the services listed in Article 278(2) from their fixed establishment in Romania for a beneficiary who is a taxable person established in another Member State, within the meaning of Article 266(2), and is subject to VAT in another Member State according to the equivalent of Article 307(2) in the legislation of that Member State;
• before they carry out certain economic activities from their respective fixed establishment under the conditions laid down in Article 266(2)(b) and (c).

Taxable persons not established in Romania

Taxable persons not established in Romania pursuant to Article 266(2) and not registered for VAT purposes in Romania may apply for registration for VAT purposes if they carry out any of the following transactions in Romania:

• importation of goods;
• transactions listed in Article 292(2)(e), if they opt for the taxation thereof pursuant to Article 292(3);
• transactions listed in Article 292(2)(f) if they are taxable by law or by option pursuant to Article 292(3).

Taxable persons established in the European Union but not in Romania

Taxable persons established in the European Union but not in Romania, who are required to register for VAT purposes in Romania, may, under the conditions of the implementing rules, fulfil that obligation by appointing a tax representative. Taxable persons established in the European Union who are required to register for VAT purposes in Romania, must, under the conditions of the implementing rules, do so by appointing a tax representative.

Deregistering a person for VAT purposes

The competent fiscal bodies will cancel the registration of a person for VAT purposes:

• if that person has been declared inactive in accordance with the provisions of the Code of Fiscal Procedure, from the date they declared they were inactive;
• if the associates/administrators of the taxable person or the taxable person himself are listed in the fiscal record with criminal offences and/or acts set out in Article 4(4)(a) of Government Order No 39/2015 on the fiscal record, from the date when the deregistration decision has been served by the competent fiscal bodies. On an exceptional basis, for companies regulated under Law No 31/1990, republished, as subsequently amended and supplemented, a decision is made to deregister the person concerned for VAT purposes;
• if a VAT return, as provided for in Article 323, has not been submitted for 6 consecutive months, for persons whose tax period is the calendar month, and for two consecutive calendar quarters;
• if the VAT returns submitted for 6 consecutive months, for taxable persons whose tax period is the calendar month, and for two consecutive calendar quarters, for taxable persons whose tax period is the calendar quarter, do not include purchases of goods/services or supplies of goods/provisions of services carried out in those reporting periods, the competent fiscal bodies will proceed to cancel registration for VAT purposes on the first day of the month following that on which the deadline for submission of the sixth VAT return falls, in the first case, and on the first day of the month following that on which the deadline for submission of the second statement of account falls, in the second case;
• when the taxable person was neither under the obligation nor entitled to apply for registration for VAT purposes;
• for taxable persons applying for deregistration for VAT purposes in order to apply the special exemption scheme referred to in Article 310 or the special scheme for farmers referred to in Article 315^1;
• if a taxable person, as a company having an established business in Romania set up under Law No 31/1990, republished, as subsequently amended and supplemented, which is subject to registration in the trade register, poses a high tax risk.

Payment of VAT

The person liable to pay the VAT is the taxable person who carries out supplies of goods or provisions of services.