VAT Registration Romania Non-Resident Company: 2026 Guide

Romania, a rapidly developing economy within the European Union, presents compelling opportunities for foreign investors and entrepreneurs. Its strategic location, competitive labor costs, and expanding consumer market make it an attractive destination. However, navigating the Romanian tax landscape, particularly Value Added Tax (VAT) registration, can be complex, especially for non-resident companies. This guide, updated for 2026, explains the VAT registration process in Romania for non-resident companies, offering legal information and practical guidance on compliance requirements.

Understanding VAT obligations from the outset can help foreign entities avoid penalties and plan their operations. Romania's fiscal regulations, primarily governed by the Fiscal Code (Law 227/2015, as subsequently amended and supplemented), align with Directive 2006/112/EC on the common system of value added tax within the EU. Ignorance of these rules, unfortunately, does not excuse non-compliance.

The Challenge: When Foreign Companies Must Register for Romanian VAT

The primary challenge for non-resident companies lies in accurately identifying the point at which their activities trigger a mandatory VAT registration Romania non-resident company requirement. This isn't always straightforward and depends heavily on the nature of services or goods supplied, the location of the customers, and the value of transactions. The fundamental principle is that VAT is a consumption tax, generally payable where the goods or services are consumed.

B2B vs B2C Scenarios

The distinction between Business-to-Business (B2B) and Business-to-Consumer (B2C) supplies is paramount in determining VAT obligations for non-resident companies.

• B2B Supplies (Business-to-Business): For services, the general rule ( enshrined in Article 278, paragraph (2) of Law 227/2015 ) is that the place of supply is where the recipient of the services has established their business. This often leads to the application of the reverse charge mechanism. If a non-resident company provides services to a Romanian VAT-registered business, the Romanian business usually accounts for the VAT (reverse charge). In this scenario, the non-resident company typically does not need to register for Romanian VAT, provided it has no other taxable supplies in Romania. However, there are exceptions, such as services related to immoveable property in Romania or certain transport services. For goods, if a non-resident company sells goods to a Romanian VAT-registered business, and the goods are transported from another EU Member State to Romania, this is often considered an intra-Community supply (ICS) for the seller and an intra-Community acquisition (ICA) for the buyer. Again, the Romanian buyer would typically account for the VAT, and the non-resident seller would not need to register in Romania, provided they are not storing goods or performing other taxable operations there.

• B2C Supplies (Business-to-Consumer): This is where VAT registration Romania non-resident company becomes more frequent. For services provided to non-taxable persons (consumers) in Romania, the general rule (established in Article 278, paragraph (3) of Law 227/2015) is that the place of supply is where the supplier is established. However, for electronically supplied services, telecommunications services, and broadcasting services to B2C customers within the EU, the One Stop Shop (OSS) scheme often applies, allowing EU-established non-resident companies to declare VAT for all EU sales via their home country's OSS portal, negating the need for individual country registrations. For non-EU companies, direct VAT registration in Romania might be required if they are supplying such services to Romanian consumers without utilizing the non-Union OSS scheme (though they can register for non-Union OSS in any EU member state).

Distance Selling Thresholds

Since July 1, 2021, the EU-wide simplified rules for e-commerce have significantly changed VAT registration Romania non-resident company requirements, particularly for distance sales of goods to consumers. The previous country-specific thresholds for distance selling have been abolished and replaced by a single EU-wide threshold of EUR 10,000 (equivalent to approximately RON 49,000 as of early 2026, though this exchange rate fluctuates) for all cross-border B2C sales of goods and B2C electronically supplied services.

Article 275^1 of Law 227/2015 incorporates these EU rules. Once a non-resident company's total sales to consumers across all EU member states exceed this EUR 10,000 threshold in a calendar year, it must either:

For non-EU companies selling goods to consumers in Romania (or other EU countries) from outside the EU, the Import One Stop Shop (IOSS) scheme simplified matters for consignments not exceeding EUR 150. If IOSS is not used, and the goods are sold DDP (Delivered Duty Paid), the non-resident company effectively acts as the importer and might need to register for VAT in Romania to declare the import VAT and subsequent sale.

Fixed Establishment vs VAT Registration Only

This is a critical distinction with significant implications beyond just VAT. A fixed establishment implies a permanent presence for conducting business, such as an office, warehouse, or even a continuous human presence (e.g., employees). If a non-resident company has a fixed establishment in Romania, it generates a much broader range of tax obligations, including corporate income tax, potential payroll taxes, and, of course, full VAT compliance as a resident entity.

Article 266, paragraph (2) of Law 227/2015 defines a fixed establishment generally as any fixed place of business, other than the seat of economic activity, characterized by a sufficient degree of permanence and a suitable structure in terms of human and technical resources to enable it to provide services or to receive and use services for its own needs. The threshold for what constitutes a fixed establishment has been the subject of much debate and ECJ case law (e.g., Welmory and Dong Yang Electronics), tightening its interpretation. Merely having a warehouse for storage, for example, may not automatically constitute a fixed establishment if the company doesn't have its own human resources there making supplies.

In contrast, VAT registration Romania non-resident company (without a fixed establishment) is solely for VAT purposes. It means the non-resident company has activities that trigger VAT obligations in Romania but does not have a permanent business presence. This limits its tax obligations specifically to VAT, meaning no corporate income tax on profits generated by this non-permanent activity in Romania, unless a permanent establishment is deemed to exist under a double taxation treaty.

My practical advice here is always to consult with a Romanian tax advisor to assess whether your operational setup and supply chain could inadvertently create a fixed establishment. The implications of misclassification are severe, including retrospective tax assessments and penalties.

Mandatory vs Voluntary VAT Registration

Understanding the triggers for VAT registration is essential for compliance and strategic planning.

Mandatory: Exceeding the 395,000 RON Threshold

For Romanian legal entities and individuals performing economic activities, the general VAT registration threshold is 395,000 RON for a calendar year. This threshold applies to the turnover achieved from taxable operations. If a company exceeds this threshold, it must apply for VAT registration no later than the date on which the threshold is exceeded.

Article 310, paragraph (1) and (2) of Law 227/2015 explicitly states this threshold and the deadline. Failure to register within this timeframe leads to significant penalties, including the inability to deduct input VAT for the period it should have been registered and subsequent fines.

Mandatory for Non-Residents with Taxable Supplies in Romania

This is a critical point for non-resident companies. Unlike Romanian entities, non-resident companies generally do not benefit from a VAT threshold when making taxable supplies in Romania, unless specifically exempted (e.g., via the OSS scheme for distance sales). If a non-resident company performs operations that are considered taxable in Romania and for which the reverse charge mechanism does not apply, it is generally required to register for VAT from the first taxable transaction.

Article 316, paragraph (1), letter b) of Law 227/2015 outlines the obligation to register for VAT for foreign persons who perform supplies of goods or services in Romania which are taxable and for which they are liable to pay VAT. This includes, but is not limited to:

• Selling goods from a warehouse in Romania to Romanian consumers or businesses (where reverse charge does not apply).
• Providing services where the place of supply is Romania, and the recipient is a non-VAT registered entity (e.g., a final consumer).
• Performing construction or installation works in Romania (unless the reverse charge applies).
• Importing goods into Romania (unless IOSS applies or the importer of record is someone else) and then selling them domestically.

Example: A non-resident company stores goods in a Romanian warehouse and sells them to Romanian consumers. Each sale is a taxable supply in Romania, and the non-resident seller is the one liable for VAT. Hence, VAT registration Romania non-resident company is mandatory from the first such sale.

Voluntary Registration Benefits for Startups

While not directly applicable to non-resident companies in the same way as resident entities (given the lack of threshold for non-residents in many cases), resident startups or low-turnover businesses might opt for voluntary VAT registration even before reaching the 395,000 RON threshold. The main benefits are:

• Right to Deduct Input VAT: A VAT-registered company can deduct the VAT it pays on its purchases (input VAT) from the VAT it collects on its sales (output VAT). This is crucial for businesses with significant initial investments or ongoing costs, where the input VAT would otherwise be a non-recoverable expense. Article 297, paragraph (1) of Law 227/2015 grants the right to deduct input VAT for VAT-registered persons.
• Professional Image: For B2B transactions, being VAT-registered can enhance a company's credibility and allow it to engage with other VAT-registered businesses who prefer to purchase from VAT-registered suppliers to benefit from input VAT deduction.

For a non-resident company considering VAT registration Romania non-resident company, the concept of voluntary registration is typically less about threshold and more about anticipating which taxable supplies will trigger mandatory registration and proactively complying to avoid penalties. For instance, anticipating a direct sale to a Romanian consumer where no OSS is used, and proactively registering to lawfully charge and remit VAT.

The Registration Process with ANAF

The National Agency for Fiscal Administration (ANAF) is the governmental body responsible for tax collection and administration, including VAT registration. The process for non-resident companies can be intricate due to the requirement for a fiscal representative for non-EU entities and stringent documentation demands.

Form 098 (Intent to Register) and Form 010 (Fiscal Registration)

The process typically involves two key forms:

1. Form 098 - “Declarație de mențiuni privind sediile secundare/punctele de lucru și înregistrarea fiscală ca plătitor de TVA” (Statement of particulars regarding secondary offices/workplaces and fiscal registration as a VAT payer). This form is used by non-resident companies that do not have a fixed establishment in Romania but perform activities that generate a VAT obligation. It essentially serves as a declaration of intent to register for VAT. It's crucial for triggering the VAT code assignment.

• Legal Basis: Order no. 239/2007 of the President of ANAF (as amended) for approving the content of Form 098.

2. Form 010 - “Declarație de înregistrare fiscală/Declarație de mențiuni/Declarație de radiere pentru persoane juridice, asocieri și alte entități fără personalitate juridică” (Fiscal registration statement/Statement of particulars/Deregistration statement for legal persons, associations and other entities without legal personality). This is the standard fiscal registration form. For non-resident companies registering for VAT without a fixed establishment, Form 010 is submitted along with or after Form 098, formalizing the registration.

• Legal Basis: Order no. 1699/2021 of the President of ANAF (as amended) for approving Form 010, Form 013, Form 015, Form 016, Form 020, Form 030, Form 040, Form 070 and Form 085.

Required Documents List

The documentation required for VAT registration Romania non-resident company is extensive and must be meticulously prepared. All foreign-language documents must be officially translated into Romanian by an authorized translator and legalized/apostille where required (depending on the country of origin and applicable international conventions).

The list typically includes, but is not limited to:

• Company registration certificate (from the country of origin), translated and apostilled/legalized.
• Articles of incorporation/Memorandum of Association (constitutive act), translated and apostilled/legalized.
• Proof of legal representative's identity (passport/ID card) and proof of their authority to act on behalf of the company (e.g., recent extract from commercial register), translated and apostilled/legalized.
• Proof of non-resident company's VAT registration in its country of origin (if applicable).
• Power of attorney issued to the Romanian fiscal representative (for non-EU companies) or to the legal/tax consultant handling the registration, translated and apostilled/legalized.
• Contract with the fiscal representative (if applicable).
• Bank details of the non-resident company.
• Declaration regarding the economic activity to be performed in Romania, specifying the type of taxable supplies.
• Proof of no outstanding tax debts in the country of domicile (certificate of fiscal residence/good standing), not older than 6 months, translated and apostilled/legalized.
• Any additional documents requested by ANAF to justify the economic activity and the intention to perform taxable operations in Romania. ANAF has the right to request further clarifications or documents, especially if they have doubts about the real economic activity or the intention to comply.

Fiscal Representative Requirement for Non-EU Companies

This is a critical distinction for non-EU entities. Non-EU companies performing taxable supplies in Romania, and thus requiring VAT registration, are legally obligated to appoint a fiscal representative. This is stipulated in Article 316, paragraph (2) of Law 227/2015.

A fiscal representative is a Romanian legal entity (e.g., an accounting firm, legal firm) that acts as a liaison with ANAF. They are jointly and severally liable with the non-EU company for all its VAT obligations, penalties, and interest in Romania. This significant liability means that finding a reliable and reputable fiscal representative is paramount. EU-based non-resident companies do not require a fiscal representative; they can register directly.

Key responsibilities of a fiscal representative include:

• Submitting VAT registration documents.
• Filing VAT returns and recapitulative statements.
• Acting as the point of contact for ANAF.
• Ensuring timely payment of VAT liabilities.
• Handling VAT refund requests.

Timeline: 30-45 Days Typical

The official processing time for VAT registration Romania non-resident company can vary. While ANAF aims for efficiency, the complexity of verifying foreign documents and the internal review process can extend timelines.

• General timeframe: Typically, the process can take anywhere from 30 to 45 calendar days from the submission of a complete and correct set of documents. However, delays are not uncommon, especially if ANAF requests additional information or clarifications.
• Pre-submission preparation: The time to gather, translate, and legalize all necessary documents should also be factored in, which can add several weeks to the overall project timeline.

My practical advice: Initiate the registration process well in advance of your first planned taxable transaction in Romania. Do not wait until the last minute, as an incomplete registration will prevent you from legally issuing VAT invoices and potentially lead to penalties.

Costs and Ongoing Obligations

Beyond the initial registration, non-resident companies must be aware of the ongoing financial and administrative burdens associated with Romanian VAT compliance.

No Government Fee for VAT Registration

Fortunately, there is no direct fee charged by ANAF for the VAT registration itself. The costs associated with registration primarily stem from engaging legal and accounting professionals, document translation, legalization/apostille, and, for non-EU entities, the fiscal representative's fees.

Fiscal Representative Fees: 200-500 EUR/month

For non-EU companies, the fiscal representative's fee is a significant ongoing cost. Given the joint and several liability, professional firms charge a premium for this service. Fees can range from EUR 200 to EUR 500 per month, or even higher, depending on:

• The complexity and volume of transactions.
• The level of risk associated with the client's business model.
• The scope of services included (e.g., just filing vs. advisory).

It is essential to have a clear contract outlining the services and fees with your chosen fiscal representative.

Monthly/Quarterly VAT Returns (Form 300)

All VAT-registered companies in Romania are required to file periodic VAT returns. The filing frequency depends on the total turnover from taxable operations in the previous calendar year.

• Monthly Filing: If, in the previous calendar year, total taxable turnover (including zero-rated and exempted transactions with deduction rights) was at least EUR 100,000 (approximately RON 490,000), VAT returns (Form 300 - “Decont de TVA”) must be filed monthly. The deadline is the 25th day of the month following the reporting period.

• Legal Basis: Article 323, paragraph (1) of Law 227/2015.

• Quarterly Filing: If the total taxable turnover in the previous calendar year was less than EUR 100,000, VAT returns can generally be filed quarterly. The deadline is the 25th day of the month following the reporting quarter.

• Legal Basis: Article 323, paragraph (2) of Law 227/2015.

Non-resident companies are usually assigned monthly filing from the outset, especially if they are expected to have significant activity, or if there's any intra-Community supply/acquisition activity, which typically triggers monthly reporting regardless of turnover.

Recapitulative Statements (Form 390)

If a non-resident company engages in intra-Community supplies of goods (ICS) or services (IQS), or intra-Community acquisitions of goods (ICA) or services, it must submit recapitulative statements (Form 390 VIES - “Declarație recapitulativă privind livrările/achizițiile/prestările intracomunitare”).

• Filing Frequency: These statements are filed monthly. The deadline is the 25th day of the month following the reporting period.
• Legal Basis: Article 325 of Law 227/2015.

This form provides details of VAT-registered customers in other EU member states for cross-border transactions and is crucial for verifying the zero-rating of ICS/IQS. Failure to submit Form 390, or submitting it incorrectly, can lead to the denial of the right to zero-rate intra-Community supplies.

Intrastat Declarations if Applicable

Intrastat declarations are statistical reports required for the movement of goods between EU Member States. They are separate from VAT returns but are often confused with them. Not all companies are required to file Intrastat.

• Thresholds: Companies must submit Intrastat declarations if their value of intra-Community arrivals (imports) or dispatches (exports) of goods exceeds specific annual thresholds set by the National Institute of Statistics (INS). These thresholds are reviewed annually but typically stand around RON 900,000 to RON 1,000,000 for arrivals and similar for dispatches.
• Filing Frequency: Monthly.
• Legal Basis: Government Ordinance no. 46/2004 regarding the National Statistical System.

Even if a non-resident company is only VAT registered, if it moves goods across borders within the EU and exceeds these thresholds through its Romanian VAT number, it might be required to file Intrastat. Your fiscal representative or accounting firm will typically handle this.

Common Pitfalls for Non-Resident Companies

Foreign investors often encounter specific challenges and make common mistakes when dealing with Romanian VAT. Awareness of these pitfalls is the first step towards avoiding them.

Late Registration Penalties (0.06%/day)

Failure to register for VAT by the mandatory deadline is a significant compliance breach. As per Article 316, paragraph (9) of Law 227/2015, if a non-resident company performs taxable operations and does not register for VAT when required, it will be liable for VAT for those operations but will lose the right to deduct input VAT for the period it should have been registered.

Furthermore, ANAF can retrospectively register the company for VAT and impose penalties. Penalties for late payment of VAT, or non-filing/late filing of returns, include:

• Late payment interest: 0.06% per day (or a similar rate, subject to annual changes by the Ministry of Finance due to prevailing interest rates) on the outstanding VAT amount, as per Article 174 of the Fiscal Procedure Code (Law 207/2015).
• Non-filing/late filing penalties: Fines can range from RON 500 to RON 5,000 for legal entities for not filing or filing late fiscal declarations, as per Article 336 of the Fiscal Procedure Code.
• Additional penalties for undeclared tax base: If ANAF discovers undeclared taxable operations and corresponding VAT, significant penalties on the undeclared tax base can apply, in addition to the late payment interest.

Incorrect Reverse Charge Application

The reverse charge mechanism is designed to simplify VAT for certain cross-border services and goods, shifting the VAT liability from the supplier to the recipient. However, its incorrect application is a frequent pitfall.

• B2B Services: For B2B services supplied by a non-resident to a Romanian VAT-registered business, the general rule is reverse charge. The non-resident supplier issues an invoice without VAT, stating "reverse charge" and citing the relevant legal articles (Article 278, paragraph (2) of Law 227/2015). The Romanian recipient then accounts for both input and output VAT in their return. A common mistake is for the non-resident to mistakenly charge Romanian VAT, which the Romanian recipient cannot deduct, leading to a financial loss.
• Intra-Community Acquisitions (ICA) of Goods: When a non-resident company (already VAT registered in Romania) acquires goods from another EU member state, it must apply reverse charge for ICA. The non-resident company declares both input and output VAT in its Romanian VAT return. Errors here often relate to misclassifying the transaction or failing to report it correctly in the Form 300 and Form 390.

Legal Basis: Article 307, paragraph (2) of Law 227/2015 for services received from non-residents, and Article 307, paragraph (4) of Law 227/2015 for intra-Community acquisitions.

Missing Intra-Community Codes (VIES)

To apply the zero-rate for intra-Community supplies of goods and services, both the supplier and the recipient must be VAT-registered in their respective EU Member States and have valid VAT identification numbers (VIES numbers).

• Verification is Key: Before zero-rating an intra-Community supply, the non-resident supplier registered in Romania must verify the Romanian VAT number of its customer in the other EU Member State via the VIES database. Similarly, for intra-Community acquisitions, the non-resident company should ensure its own Romanian VAT number is recognized in VIES.

• Consequences of Invalid VIES: If the recipient's VIES number is invalid or not provided, the supplier cannot zero-rate the supply and must charge Romanian VAT. Failure to do so can lead to an assessment by ANAF for the undeclared VAT, plus penalties. This is explicitly stated in Article 294, paragraph (2) of Law 227/2015 which sets conditions for applying zero-rate, including possession of a valid VAT identification number of the acquirer.

Practical Comparison: Fixed Establishment vs. VAT Registration Only

To highlight the key differences, here's a comparison table:

FAQ (Frequently Asked Questions)

What is the VAT registration threshold in Romania?

For non-resident companies making taxable supplies in Romania, there is generally no VAT registration threshold. If a non-resident company performs operations that are taxable in Romania and for which it is liable to pay VAT, it must register for VAT from the first transaction. The EUR 10,000 EU-wide threshold applies specifically to distance sales of goods and B2C electronically supplied services, after which companies must either register in each country or use the OSS scheme. For all other taxable supplies, mandatory VAT registration Romania non-resident company kicks in immediately.

Do I need a fiscal representative?

Yes, if your non-resident company is established outside the European Union. Under Article 316, paragraph (2) of Law 227/2015, non-EU companies requiring a Romanian VAT number for taxable supplies must appoint a fiscal representative who is jointly and severally liable for their VAT obligations. If your company is established in an EU Member State, you do not need a fiscal representative and can register directly.

How long does VAT registration take?

From the submission of a complete and accurate set of documents, the VAT registration Romania non-resident company process typically takes between 30 to 45 calendar days. However, this timeframe excludes the time needed to gather, translate, and legalize all required foreign documents, which can add several weeks. It's advisable to start the process well in advance of your planned taxable activities.

Can I recover input VAT before registration?

Generally, no. The right to deduct input VAT in Romania arises only from the moment a company is registered for VAT. If a non-resident company incurs input VAT expenses before its mandatory VAT registration Romania non-resident company date, it typically loses the right to deduct that VAT for the period prior to registration. This underscores the importance of timely registration.

What VAT rate applies in Romania?

Romania has a standard VAT rate of 21%. The reduced VAT rate is 11% from 1 August 2025 for the supplies specifically listed in Fiscal Code article 291; eligibility must be checked for each supply. A zero-rate applies to intra-Community supplies and exports outside the EU, under strict conditions. Always consult Article 291 of Law 227/2015 for the precise and most up-to-date VAT rates.

What happens if I don't register for VAT?

Non-registration for VAT when mandatory carries significant risks and penalties. ANAF can retroactively register your company, assess unpaid VAT, impose late payment interest of 0.06% per day, and levy fines ranging from RON 500 to RON 5,000 for non-filing/late filing of declarations. Crucially, you will lose the right to deduct any input VAT incurred during the period you should have been registered, turning that VAT into a direct cost. Furthermore, inability to issue valid VAT invoices can disrupt your supply chain and business relationships. This can also lead to reputational damage and complicate future business activities in Romania.

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Conclusion and Legal Advice

Navigating VAT registration Romania non-resident company is undeniably complex. The intricacies of B2B vs. B2C, distance selling rules, fixed establishment considerations, and the specific requirements for non-EU entities demand a meticulous approach. The legal framework, primarily articulated in Law 227/2015 (Romanian Fiscal Code) and the Fiscal Procedure Code (Law 207/2015), though aligned with EU directives, requires precise local interpretation.

My strongest advice to any foreign investor or entrepreneur considering operations in Romania is to:

Understanding these requirements can help foreign companies identify their VAT obligations in Romania. For direct assistance with your specific VAT registration Romania non-resident company needs, please visit our VAT Compliance Services page or Company Formation page for related services.

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This article is for informational purposes only and does not constitute legal advice. For specific situations, please consult a specialized lawyer.