Practical situation
A company providing thermal boiler repair services collected a 100% advance payment in July 2025, invoiced with the then-standard VAT rate of 19%. The actual service is performed in August 2025.
Question: What VAT rate applies to the final invoice issued in August?
Legal framework
According to Article 280 (2) of the Romanian Fiscal Code, VAT becomes chargeable on the invoice date — the date when the tax authority is entitled to claim the tax. Article 282 (3) clarifies this as the taxpayer’s obligation to pay the tax to the state budget.
The advance invoice issued in July 2025 is reportable in that month’s VAT return (Form D300) and informative declaration (Form D395).
VAT Rate Adjustment Rules
In the case of VAT rate changes, Article 280 (7) mandates the application of Article 291 (4), (5), and (6) as follows:
- Art. 291 (4): The applicable VAT rate is the one in effect at the time the service is provided.
- Art. 291 (5): If an advance invoice is issued before the service, the VAT rate at that advance date applies initially.
- Art. 291 (6): If the VAT rate changes between advance and delivery, adjustment (regularization) is mandatory to reflect the rate in effect at the time of service.
Conclusion
Since the service is delivered in August 2025, when the standard VAT rate is 21%, the advance invoice issued at 19% must be regularized. The final invoice will be issued with 21% VAT, and the original advance invoice must be reversed or adjusted accordingly.