VAT recovery for companies that have purchased goods / services in other EU Member States

Romanian companies that have purchased goods / services or made imports in other EU member states, for which they paid VAT in the respective states, can recover the tax under certain conditions.

For the tax paid in 2018, the deadline for applying for the VAT reimbursement request is September 30, 2019

In Romania, any locally established taxable person can obtain VAT reimbursement related to the purchase of goods/services and imports made in the other Member States. The essential condition that the applicant must fulfill is to have performed operations that give the right to deduct the VAT.

In addition, the applicant does not have to be established in the Member State where he made the respective purchases and also, he must not have delivered goods/services on the territory of that state for which he (the applicant) is obliged to pay the tax.

The most common types of purchases are accommodation and restaurant services, travel expenses, fuel, access to fairs and exhibitions.

Thus, if you have a valid VAT code and carry out operations with the right of deduction in Romania, we recommend you to carry out an analysis of the amounts representing VAT paid in other Member States where you are not established/registered for VAT purposes

The period for which VAT can be reimbursed is between three months and one year, with the exception of the situation in which it represents the remaining period until the end of the calendar year.

If the reimbursement request concerns a reimbursement period of less than one calendar year, but greater than three months, the amount of VAT, for which a reimbursement is requested, may not be less than 400 euros. For reimbursement periods of one calendar year or the remaining period of one calendar year, the VAT amount may not be less than 50 euros

If the conditions are met and the limits are validated, the taxable person can submit a request for reimbursement (electronically) by September 30, 2019, for the VAT paid during 2018.  If the tax base mentioned on the invoice or the import document exceeds 1,000 euros, respectively 250 euros, in the case of fuel bills, the Member State of reimbursement may request also the attachment of the documents. To save time, our recommendation is to attach the related documents at the same time with the request for reimbursement.

The request is submitted through the electronic portal made available by the Romanian tax authorities and the applicant receives a confirmation of receipt. Next, the Romanian authorities send the request for reimbursement to the relevant Member State

We draw attention to the fact that the Member State of reimbursement may establish the language in which the applicant must provide the information about the reimbursement request or any other additional information.

For example, when Romania is the state of repayment, all requests for additional information, decisions or communications are transmitted in Romanian to applicants from other countries. This state of things complicates the process and delays the response time of taxable persons established in the other Member States.

The deadline for settling the reimbursement request is between four and eight months from the date when the reimbursement Member State receives the request. We recommend regular checking of data from the Virtual Private Area (ANAF service through which electronic communication of information between taxpayers and the tax authority is carried out) in order to respond in time to any requests for information.

If the reimbursement request is approved, the reimbursement of the amount shall be made by the reimbursing Member State within ten working days from the expiry of the four-month term or, if additional information or other subsequent information has been requested, up to maximum eight months.

It is also important to validate the mentioned minimum tax limits which are relevant for each Member State (minimum VAT value paid 400 euros, respectively 50 euros), to confirm the right to deduct (on the basis of supporting documents) and, of course, to submit the VAT reimbursement request until September 30, 2019.