How to register a company in Romania?

In order to register a company in Romania, you need to choose the type of company form you want to incorporate, to prepare the necessary documents and to submit the application to the Romanian Trade Registry. Most common forms of companies in Romania are the Limited Liability Company (LLC), Joint Stock Company (SA) and sole trader (PFA).

How long does it take to open a company in Romania?

The company formation in Romania process will take 2 working days, since the date the incorporation application is submitted to the Romanian Trade Registry.

What is the main advantage to open a company in Romania?

One of the lowest taxation in EU: 1% turnover tax for the companies whose turnover does not exceed EUR 60,000 and have at least one employee or 3% turnover tax if the companies has a revenue exceeding EUR 60,000 or the companies is engaged in some specific activities.

Can I start a company in Romania as a foreigner?

Foreign citizens and legal persons can quickly and easily incorporate their own company in Romania, without any restrictions. There is no need for a Romanian shareholder and director

Romania VAT Number Registration, EU VIES VAT ID code format

Looking to expand your business in Europe? Obtaining a Romania VAT number and completing your VIES registration VAT are crucial steps for ensuring compliance with EU tax regulations. Whether you're applying for a VAT registration number Romania or a VIES European VAT number, understanding the process of VAT ID registration Romania is essential for smooth cross-border transactions.

If you're planning to do business in Romania or expand your operations into the Romanian market, understanding the Romania VAT number is crucial. A VAT registration number in Romania is required for businesses engaged in taxable activities, enabling them to comply with the country’s Value Added Tax regulations. In this guide, we'll walk you through everything you need to know about the VAT registration number in Romania, including how to obtain your VAT ID number Romania, the importance of the VAT identification number in Romania, and the steps involved in VAT registration in Romania. Whether you're looking to verify a Romania VAT code or need assistance with your Romania VAT ID, this comprehensive overview will help ensure you're VAT-compliant and ready for business success.

Introduction to Romanian VAT Number

Understanding the VAT (Value Added Tax) registration process is essential for businesses operating within Romania or those trading with Romanian companies. Whether you’re an entrepreneur starting a new venture or an international business seeking to expand into Romania, getting acquainted with the Romania VAT number, also known as the VAT identification number (VAT ID), is crucial. In this guide, we will walk you through everything you need to know about the VAT registration number in Romania, how to apply for it, and why it's important for your business.

What is VAT? What is Romania VAT number applied to?

Value Added Tax (VAT) is a consumption tax applied to the sale of goods and services in the European Union, including Romania. It is typically charged at each stage of production, from raw materials to final sale. VAT ensures that tax is collected at every stage, making it a major revenue source for EU member states.

In Romania, VAT applies to most goods and services sold within the country. Businesses registered for VAT in Romania are required to charge VAT on their taxable sales and can reclaim VAT on their business expenses.

Business owners who require assistance with VAT registration in Romania can count on our team of skilled lawyers. Obtaining a Romania VAT number is a vital step for businesses involved in taxable transactions within the country. Our legal team is ready to support you throughout the process, ensuring you meet all the requirements for securing a VAT registration number Romania. From preparing the necessary documentation to managing interactions with the tax authorities, we ensure the process is seamless. For more information about acquiring your VAT ID number Romania, explore the details below to learn how we can assist your business.

Key Terms on VAT identification number Romania. VAT number Romania examples

VAT Registration Number Romania: The unique identifier for businesses registered for VAT purposes in Romania.

Romania VAT Number Format: Typically a 10-digit number that identifies businesses in the VAT system.

VAT ID Number Romania: Another term for VAT registration number, used interchangeably.

VAT Identification Number Romania: The full technical term for a VAT registration number in Romania.

EU VAT Number: unique identifier issued to businesses and organizations that are registered for VAT (Value Added Tax) in the European Union.

VIES registration VAT: a system in which businesses register for VAT (Value Added Tax) in the European Union, allowing them to use the VAT Information Exchange System (VIES).

Who Needs a VAT Registration Number in Romania?

Romanian Businesses who needs a Romania VAT number

Any company or individual engaged in economic activities, such as providing goods or services, in Romania may be required to register for VAT purposes and obtain a Romania VAT number. Specifically, VAT registration is mandatory if your annual taxable turnover exceeds 300,000 RON (approximately €61,000).

Foreign Businesses with mandatory VAT identification number in Romania

Foreign companies selling goods or services in Romania may also be required to register for VAT purposes and obtain the VAT ID number Romania. Examples include:

Distance sellers selling products to Romanian consumers. For these companies not only is it mandatory the VAT registration in Romania, but is very usefull for the cashflow of the company.
E-commerce platforms dealing with Romanian customers may need the Romania VAT number, most of them exceeding the threshold provided above.
Service providers such as consultancy or digital services offered to Romanian clients may be required the registration for Romania VAT number, most of them exceeding the threshold provided above.

A taxable person who has established their business outside of Romania but operates through a fixed registered office in the country is required to apply for VAT registration in Romania in accordance with the provisions of the Tax Code. This registration ensures compliance with local VAT regulations, allowing the business to obtain a Romania VAT number to engage in taxable activities. By doing so, they can secure Romania VAT ID number and adhere to the legal requirements as stipulated by Romanian law.

For taxable persons who are neither established in Romania nor registered for VAT purposes in the country, they are required to apply for VAT registration in Romania with the competent authorities for any tax-deductible operations conducted within Romania. This requirement applies to all operations except for transport services and related ancillary services. Registration must be completed before the operations take place, unless the beneficiary is the one liable to pay the tax. In such cases, obtaining a Romania VAT number ensures compliance with the VAT regulations under Romanian tax law.

Foreign companies are required to appoint a local tax representative to assist them in meeting the VAT registration in Romania requirements. While working with a tax specialist is always beneficial, it is particularly recommended for foreign companies to ensure that their VAT registration number Romania application is complete and accurate when submitted to the authorities.

Our team of experienced lawyers in Romania is ready to help your company obtain a Romania VAT number in 2024, guiding you through the entire process and ensuring full compliance with the necessary legal requirements. Whether you need a VAT ID number Romania or assistance with any aspect of VAT, we are here to support you.

Exemptions and Special Cases for VAT registration number in Romania

Some businesses, such as those with lower turnover or those providing certain VAT-exempt services (e.g., education, healthcare and medical services, veterinary services, activities of non-profit associations, public radio and television, postal services activities, trade union organizations), might not need to register immediately for VAT purposes in Romania. However, even if you're under the threshold, you can opt for voluntary registration to claim back VAT on your purchases.

Romania VAT Number Format

The Romania VAT number has a specific format. For companies registered in Romania, the VAT number is typically composed of:

RO + 10 digits (e.g., RO1234567890).

Breakdown of the Romania VAT number format:

RO: The country code for Romania.
Digits: The rest of the number is unique to each business and may include up to 10 digits, depending on the business's structure.

It’s important to use the correct format when issuing invoices, submitting VAT returns, or conducting cross-border trade within the EU. You can verify a Romania VAT number using the VIES (VAT Information Exchange System).

VAT Tax Rates in Romania

Standard Romania VAT Rate (19%).

The primary VAT rate, also known as the standard rate, is the main rate applied to goods and services in Romania, generally encompassing the majority of items, with exceptions for those qualifying for reduced rates. Essential goods or services that meet specific criteria may be exempt from this standard rate.

Reduced VAT Rates (9%, 5% and 0%).

Certain goods and services may be eligible for reduced VAT rates (9%, 5% and 0%), which are subject to periodic adjustments:

9% First Reduced VAT Rate in Romania

Goods: This rate covers the delivery of a range of goods, such as food and drinks for both humans and animals, live animals, seeds, plants, and ingredients related to food. However, it does not include certain items like alcoholic drinks, specific non-alcoholic beverages, and foods that contain more than 10 grams of added sugar per 100 grams of the product, with the exception of cookies and biscuits.

Green Energy: The discounted rate includes the delivery and installation of sustainable energy solutions, including photovoltaic panels, solar panels, thermal systems, heat pumps, and other high-efficiency heating systems that produce low emissions. These products are required to adhere to particular ecological design guidelines and energy efficiency benchmarks.

Construction: Furthermore, the discounted rate is applicable to the delivery and installation of these energy-efficient systems during construction deliveries, which may include additional options, although there are some exceptions.

Entertainment and Sports: Services that provide entry to bars, amusement parks, recreational parks, fairs, exhibitions, cinemas, and cultural events (with the exception of those that are tax-exempt) will also be subject to the reduced tax rate. Additionally, services granting access to sports events will fall under this reduced rate as well.

Medicines and medical equipment for human and veterinary use

Food products and non-alcoholic beverages not qualifying for the second reduced rate

Water supply and sanitation services, including drinking and irrigation water

Agricultural products and services, including fertilizers and pesticides

Accommodation services provided by hotels and similar establishments, including campgrounds

Restaurant and catering services, excluding alcoholic beverages and specific non-alcoholic drinks

5% Second Reduced Rate

Goods or Services

Books, including school textbooks, newspapers, and magazines not used for advertising

Admission to recreational parks, fairs, amusement parks, zoos, memorial houses, museums, castles, and other similar attractions

Social housing, including land for housing elderly, retirees, children, and rehabilitation institutions

Housing for single individuals that is habitable at the time of purchase, with a maximum land area of 120 square meters and a cost not exceeding RON 700,000

Tourist or recreational transportation via narrow-gauge railroads, vintage steam engines, cable cars, ski lifts, animal-drawn vehicles, or boats

High-quality traditional, organic, or mountain-produced food and drink (excluding alcoholic beverages), as approved by the Ministry of Agriculture and Rural Development

Transactions involving firewood

Winter heating services for designated customer groups

0% Zero Rated

Goods and related services, including transportation directly linked to the export of goods

International passenger transportation

Goods that meet specific requirements and are traded within the European Union

Supplies of goods and services related to maritime and aviation transportation

Goods placed in a suspensive customs regime and related services

Certain activities performed in free trade zones and free warehouses

Services for imported goods intended for processing and subsequent export outside the EU

Supplies of goods to embassies, consulates, diplomatic missions, international organizations, and NATO military forces

Gold supplies to the National Bank of Romania

VAT Tax Rates in European Union

Understanding VAT rates in the European Union is crucial for businesses involved in cross-border trade. The European Union applies a Value Added Tax (VAT) system with rates that vary by country, though all follow a standard framework. The standard VAT rates in EU member states typically range from 17% to 27%, with countries like Luxembourg having the lowest rate at 17%, and Hungary the highest at 27%. In addition to the standard rate, many countries offer reduced VAT rates for specific goods and services such as food, medicine, and transportation. For businesses, being aware of the VAT rates in the European Union helps ensure compliance with tax regulations and smooth operations across borders.

Romania VAT number, VAT registration number Romania, VAT ID number Romania, VAT identification number Romania, VAT registration Romania

How to Apply for a VAT Registration Number in Romania in 2024-2025

To obtain a Romania VAT number, businesses must complete and submit a VAT registration application available on tax authority (National Agency for Fiscal Administration) official website. The registration process follows the criteria outlined in Order no. 2856/2017 and 2509/5672/C/2022, which sets the conditions for VAT registration in Romania at the moment the company is incorporated, within the setting up process or at a later moment, after the company incorporation.

The Romania VAT number can be obtained directly when registering an entity with the Trade Register by selecting the tax registration option in the application form and providing required additional details. This process enables businesses to request a VAT registration number in Romania directly at the Trade Register.

Consequently, any entity that expects to reach or exceed the exemption threshold of 300,000 lei, as well as those that do not meet this threshold but wish to adopt the standard VAT regime, can apply for their VAT ID number Romania right from the beginning, directly at the ONRC (National Trade Register Office). This streamlined approach simplifies the path to obtaining a VAT identification number Romania for new businesses in Romania.

Following these steps and conditions ensures successful VAT registration for businesses operating in Romania.

Romania VAT Registration for Romanian Entities

If you are a Romanian company or individual looking for VAT registration in Romania, the application process is fairly straightforward. Here are the steps:

Prepare Required Documents: proof of identity (for individuals or legal representatives of the company) or company incorporation documents and constitutive deed (for businesses).
Submit Application to ANAF (Agenția Națională de Administrare Fiscală). Businesses must apply for VAT registration with the tax authority. The application can be submitted online via the ANAF portal or in person at local tax offices.
Verification Process. After submitting your application, the tax authorities will review your documentation. They may also perform a site visit to ensure that the business is legitimate.
Receive Your Romania VAT Number. Once approved, you will receive a certificate with your official VAT registration number. From that point on, you are required to charge VAT on applicable sales and file regular VAT returns.

Romania VAT Registration for Foreign Companies

Foreign companies without a physical presence in Romania may also need to register for VAT. The process involves appointing a fiscal representative in Romania who will manage your VAT affairs, including filing returns and ensuring compliance.

The required documents for foreign entities include the following: the certificate of incorporation or equivalent document from your home country, the detailed description of your intended business activities in Romania and the power of attorney for the fiscal representative.

Romania VAT Certificate

The VAT certificate is the official document that confirms a business is registered for Value Added Tax (VAT) in Romania. It provides the Romania VAT number, which is essential for businesses to legally operate and conduct taxable transactions in Romania. Once registered, your company can charge VAT on goods and services, recover VAT on business expenses, and participate in intra-EU trade. The sample of the Romania VAT certificate is listed below:

Romania VAT number, VAT registration number Romania, VAT ID number Romania, VAT code Romania, VAT code Romania

VAT Compliance and Obligations in Romania

Once registered for VAT, businesses in Romania have specific responsibilities:

A. VAT Rates in Romania. Romania applies the following VAT rates: Standard rate: 19% (applies to most goods and services). And Reduced rates: 9% and 5%, applicable to specific goods like books, medicines, real estate and certain food products.

B. Filing VAT Returns. Businesses are required to submit VAT returns either monthly or quarterly, depending on their turnover. These returns must detail: the total VAT collected on sales and the VAT paid on purchases (to be reclaimed). Failure to submit returns on time can lead to penalties and interest charges, so it's important to stay on top of deadlines.

C. Invoicing Requirements. Invoices issued by a business with a VAT registration number in Romania must include: the VAT registration number (both of the supplier and the customer, if applicable), the total amount of VAT charged, a detailed description of the goods or services.

D. VAT Deduction and Reimbursement. Registered businesses can reclaim VAT on purchases made for business purposes, as long as they meet the conditions for deduction. VAT refunds in Romania are typically processed within 45 days of the claim, though delays can occur if additional verification is required.

Cross-Border Transactions and Romania VAT Number

A. Intra-EU Transactions on Romania VAT number taxpayers

When trading with other EU member states, the VAT number plays a crucial role. For intra-community supplies (sales to VAT-registered businesses in other EU countries), the transaction is usually zero-rated, meaning no VAT is charged. However, both businesses must provide valid VAT numbers to ensure compliance with EU VAT rules.

B. Reverse Charge Mechanism and its impact on Romania VAT registered taxpayers

For cross-border services, Romania follows the reverse charge mechanism. This means the responsibility for reporting and paying VAT shifts from the supplier to the buyer. In this case, a Romanian company receiving services from another EU member state would report the VAT themselves.

How to Verify a Romania VAT Number?

Businesses dealing with Romanian companies can verify the validity of a VAT number through the VIES system. This online tool allows you to check if a VAT number is valid and active within the EU, ensuring that your transactions are compliant with European VAT regulations.

Penalties for Non-Compliance with VAT Rules in Romania

Failure to register for Romania VAT system when required, or non-compliance with VAT rules, can lead to serious consequences. Penalties include:

Fines: Non-compliance may result in fines that can range from a few hundred to thousands of euros, depending on the severity.
Interest on Late Payments: If VAT is not paid on time, interest will accrue on the unpaid amount.
Suspension of VAT Number: In severe cases, a business's VAT number may be suspended, preventing it from trading legally.

VAT Registration Annulment

The Romania VAT number may be revoked by the tax authorities under several circumstances:

a) If the entity is declared inactive.

b) If the entity is registered as temporarily inactive in the Trade Register.

c) If the taxpayer or their associates or managers have criminal tax offenses or other issues recorded in accordance with the Law on the organization and functioning of the fiscal record.

d) If the taxpayer fails to submit the required VAT returns as specified by the Tax Code, under certain conditions.

e) If the tax returns filed for six consecutive months do not indicate the purchase or supply of goods or services for certain taxpayers.

f) If the taxpayer was neither obligated nor entitled to request such registration.

g) For taxpayers who request removal from the VAT register to apply the special exemption regime outlined in the Tax Code.

h) If a company registered in Romania lacks the intention or ability to engage in economic activity.

Understanding these conditions is crucial for businesses to maintain their VAT registration in Romania and ensure compliance with local tax regulations.

EU VAT Number. What is VIES VAT Number and Do I need to Register?

When conducting business across European Union member states, obtaining VIES registration VAT is essential for verifying the VAT status of companies. VIES, or the VAT Information Exchange System, allows businesses to check the validity of a VAT number within the EU, ensuring compliance with intra-community trade regulations. Whether you're a company selling goods or providing services across borders, proper VIES VAT registration helps avoid potential tax issues, supports smooth transactions, and ensures that both parties are VAT-registered. In this guide, we’ll explore the importance of VIES registration for businesses and how to register for VAT in VIES.

You may check the VIES VAT number validation, available on the European Commission website.

The Romania VAT number was introduced to reduce the administrative burdens faced by companies engaged in cross-border trade within the European Union. This tax facilitates intra-Community trade by applying to taxable entities that sell goods and services across EU borders. The main categories of taxable transactions include the supply of goods by a taxable person, acquisitions of goods from another Member State, services provided by taxable persons, and imports from outside the European Union.

To acquire an EU VAT number, businesses in Romania must register as intra-Community trade operators. This process involves submitting specific documents to obtain the VAT registration number Romania. The fiscal authority will respond within ten days of the application submission. It is crucial for businesses to complete this registration, as those that fail to register with the Registry of Intra-Community Operators will not be issued a valid VAT ID number Romania.

Our knowledgeable team can assist companies with their VAT registration Romania and ensure compliance with the necessary regulations, facilitating a smooth process for obtaining the VAT identification number Romania required for intra-community transactions.

FAQs regarding Romania VAT Number Registration

1. What is a Romania VAT number? A Romania VAT number is a unique identification code assigned to businesses for Value Added Tax purposes. It allows businesses to charge, collect, and report VAT on taxable goods and services within Romania.

2. How do I obtain a VAT registration number in Romania? To obtain a VAT registration number in Romania, you must submit an application to the Romanian tax authorities. The process includes providing essential business details, financial records, and meeting the registration criteria based on turnover or cross-border trade.

3. Who needs a VAT ID number in Romania? Any business conducting taxable activities in Romania, including selling goods or services, or importing/exporting within the EU, needs a VAT ID number Romania. Non-resident companies may also require one if they engage in local taxable transactions.

4. What is the purpose of a VAT identification number in Romania? The VAT identification number Romania is used to identify businesses in VAT-related transactions. It ensures accurate VAT reporting, compliance with EU tax laws, and allows companies to reclaim VAT on business expenses.

5. How long does it take to get a VAT number in Romania? The process usually takes 5 days, depending on the completeness of the Romania VAT registration number application and the verification process.

6. Can I reclaim Romania VAT number if my turnover is below the threshold? Yes, businesses can opt for voluntary VAT registration even if their turnover is below the threshold, allowing them to reclaim VAT on purchases.

7. What happens if I trade without a valid VAT number in Romania? Operating without a valid VAT number can lead to penalties, including fines and interest charges. In severe cases, your business may be suspended from trading.

8. Can I verify a Romania VAT code online? Yes, you can verify a Romania VAT code using the VIES system (VAT Information Exchange System) provided by the European Commission. This ensures that a business is properly registered for VAT in Romania.

9. What happens if I don't register for a VAT number in Romania? Failure to obtain a VAT number Romania when required can result in penalties, fines, and potential legal action. Additionally, businesses may not be able to reclaim VAT on purchases or conduct VAT-exempt transactions within the EU.

10. Do non-EU companies need a Romania VAT ID? Yes, non-EU businesses conducting taxable activities in Romania, such as providing digital services or importing goods, may need to obtain a Romania VAT ID to comply with local tax laws.

This FAQ should answer your key questions about the Romania VAT number and guide you through the registration process to ensure full compliance.

By following the necessary steps to register and maintain your VAT compliance, your business will be well-positioned to thrive in Romania's growing economy.

Conclusion: Final Steps to Securing Your Romania VAT Number: VAT Registration, VAT ID, and VIES Registration

In conclusion, obtaining a Romania VAT number is an essential step for any business looking to operate within the country and comply with Romanian tax regulations. The process of securing a VAT registration number in Romania ensures that your business can legally collect and remit VAT on taxable goods and services. By understanding the importance of the VAT ID number Romania and the VAT identification number Romania, you can avoid potential legal and financial complications. Whether you need assistance with VAT registration in Romania, verifying a Romania VAT code, or applying for a Romania VAT ID, following the correct procedures will streamline your business operations and enhance your credibility in the Romanian market.

For further assistance and detailed guidance on the Romania VAT Number, VAT Registration, VAT ID, EU VAT number and VIES Registration, feel free to get in touch with our English speaking lawyers at sorina@roadvocacy.ro or +40 744 65 09 50 or using the contact form on at www.roadvocacy.ro.

How to Obtain Romania VAT Number: VAT ID Registration, VAT identification number Romania and VIES Registration Explained