Romania VAT Guide 2026

Overview — TVA in Romania

Romania's VAT system is fully harmonized with EU VAT directives (Directiva TVA 2006/112/CE). The standard VAT rate of 19% has been in effect since 2017 (reduced from 20% in 2016). VAT is administered by ANAF through its regional fiscal units. The VAT registration threshold for Romanian companies is RON 300,000 (approximately EUR 60,000) in annual turnover. Businesses below this threshold may register voluntarily or benefit from the scutire de TVA (VAT exemption) regime for small enterprises.

Standard Rate — 19%

The standard VAT rate of 19% applies to most goods and services in Romania. This includes general consumer goods, electronics, clothing, professional services, telecommunications, and energy. Romania's 19% rate is in the lower-middle range of EU VAT rates (the EU average is approximately 21%). The standard rate generates the majority of VAT revenue for the national budget.

Reduced Rate — 9%

A reduced VAT rate of 9% applies to a wide range of essential goods and services:

• Foodstuffs: Most food products, including bread, meat, dairy, fruits, vegetables, and beverages (excluding alcohol)
• Pharmaceuticals: Medicines for human and veterinary use
• Medical devices: Certain medical equipment and supplies
• Hotels and accommodation: Hotel services, camping, and similar hospitality
• Restaurants and catering: Food and beverage services (excluding alcohol)
• Water supply: Potable water and wastewater services
• Cultural events: Admission to cinemas, museums, zoos, fairs, and similar cultural events
• Social housing: Supply and renovation of social housing

Reduced Rate — 5%

A super-reduced VAT rate of 5% applies to:

• Residential housing: Purchase of new homes valued up to RON 600,000 (approximately EUR 120,000), including the land
• Social housing construction: Construction and renovation of social housing
• Certain food products: Bread and bakery products (when sold through approved social programs)

The 5% rate for housing is a significant incentive for first-time home buyers and has stimulated the residential construction market. The threshold of RON 600,000 is adjusted periodically.

VAT Registration and Compliance

Businesses exceeding the RON 300,000 turnover threshold must register for VAT. Registration is done through the ANAF e-SPv portal. VAT returns (Decontul de TVA) are filed monthly or quarterly depending on the taxpayer's category. Large taxpayers file monthly; small taxpayers may opt for quarterly filing. The standard deadline is the 25th of the following month (for monthly filers). Romania operates a Split TVA (split VAT payment) system for certain categories, though this has been relaxed in recent years.

Intra-Community and International Transactions

As an EU member, Romania applies the normal EU VAT rules for intra-Community supplies (0% VAT for B2B cross-border supplies to VAT-registered EU businesses) and imports from outside the EU (subject to import VAT at the standard or reduced rate depending on the goods). Romania participates in the EU One-Stop Shop (OSS) and Import One-Stop Shop (IOSS) schemes for simplified cross-border VAT compliance for e-commerce.

FAQs

What is the VAT threshold for small businesses?

The annual turnover threshold for mandatory VAT registration is RON 300,000 (approximately EUR 60,000). Businesses below this threshold can opt for VAT exemption (scutire de TVA) and do not charge VAT on their invoices but also cannot deduct input VAT.

What is the Split TVA system?

Romania introduced a split VAT payment system (TVA split) where VAT collected must be paid into a dedicated VAT bank account. This was mandatory for certain taxpayers but has been made optional since 2020. It remains a compliance option for businesses that choose to use it.

How are e-commerce sales to Romanian consumers taxed?

Non-EU sellers selling to Romanian consumers face standard VAT rules. EU sellers can use the One-Stop Shop (OSS) to declare and pay Romanian VAT on B2C cross-border sales. The OSS return covers all EU member states in a single filing.

Disclaimer

This guide provides general information about Romanian VAT (TVA) for 2026. Rates and rules are subject to change. Always consult with a qualified Romanian tax advisor or ANAF directly for advice specific to your situation. InvestmentKit does not provide tax advice.