REGISTRATION FOR VAT PURPOSES IN ROMANIA
Registration for VAT purposes in Romania is mandatory as soon as the company has a turnover of over RON 300,000 (approximately EURO 65,000) per year. Below this amount, registration is optional.
REGISTRATION FOR VAT PURPOSES AT INTRA - COMMUNITY LEVEL
Registration for VAT purposes at intra-Community level is mandatory for all companies performing an intra-Community operation:
either the purchase or sale of a service from another company in the European Union;
either intra-Community acquisition or delivery.
INDEPENDENT PROCEDURES
Registration for VAT purposes at intra-Community level and registration for VAT purposes in Romania are procedures independent of each other.
In this manner, a Romanian company can be subject to VAT in Romania without being subject to VAT at intra-Community level (this is the case, for example, of a Romanian company achieving a turnover above RON 300,000 without performing international operations) or, on the contrary, subject to VAT at intra-Community level without being subject to VAT in Romania (this is the case, for example, of a Romanian company that performing international operations without achieving a turnover above RON 300,000).
A Romanian company subject to VAT at intra-Community level without being subject to VAT in Romania is in a situation where:
it sells its products and services to other European companies without taxes, i.e. without the application of VAT in Romania
it purchases its products and services from other European companies without taxes, but will then have to pay VAT in Romania (at a rate of 19%) for these products and services purchased in this manner (VAT which otherwise will not be deductible, as the company is not subject to VAT in Romania).
When a Romanian company is subject to VAT at intra-Community level in the beginning (as it performs international operations without achieving a turnover above RON 300,000) and then is subject only to the national VAT regime (as it achieves a turnover above RON 300,000), the Romanian tax procedural rules compel it to resume its registration procedure for VAT purposes at intra-Community level in order to obtain a new intra-community VAT registration number.