Starting November 20, 2025, the VAT exemption procedure issued by the Romanian tax authorities (ANAF) entered into force. It regulates the application of the special VAT exemption scheme for small enterprises by taxable persons established in other EU Member States for supplies of goods and/or services performed in Romania.
The procedure applies to taxable persons not established in Romania, regardless of whether they have a fixed establishment or are registered for VAT purposes under Article 316 of the Fiscal Code. The option to apply the exemption regime must be exercised only in the Member State of establishment, not directly in Romania.
Administration of the scheme
The competent authority is the Tax Administration for Non-Resident Taxpayers within the Bucharest Regional Tax Directorate, which cooperates electronically with the tax authorities of the Member States concerned.
EU turnover threshold
The notification is forwarded to Romania only if the total EU turnover does not exceed EUR 100,000, neither in the current year nor in the previous one.
National threshold verification
After receiving the notification, ANAF verifies compliance with Romanian legislation and responds within 15 working days. The exemption is granted only if:
- the national threshold of RON 395,000 is not exceeded in the current or previous year;
- the taxable person is not subject to the one-year exclusion period.
The exemption applies from the date the special identification code is communicated by the Member State of establishment. Any existing Romanian VAT registration is cancelled automatically.
Rejection of the request
The request is rejected if:
- the national threshold is exceeded;
- the one-year exclusion period applies.
Rejection is formalized by an official decision notified to both the company and the Member State authority.
Quarterly reporting and monitoring
EU companies must submit quarterly reports via their home tax authorities. ANAF monitors:
- the national threshold – exceeding it leads to immediate loss of exemption, mandatory VAT registration and a one-year ban;
- the EU threshold of EUR 100,000 – exceeding it results in termination of the exemption.
Failure to submit reports is notified to ANAF and forwarded to control authorities.
Termination of the regime
The exemption regime may cease due to:
- exceeding the thresholds;
- voluntary withdrawal;
- cessation of activity in Romania;
- failure to meet legal conditions identified by ANAF.