Romanian VAT is recognized as “Taxa pe valoare adaugata (TVA)”
There is a standard rate of 19% and there are reduced rates of 9%
It is not compulsory to appoint a fiscal representative while claiming VAT based on the 8th or 13th Directive.
For taxpayers setup and registered for VAT purposes in an EU member state is not obligatory to appoint a fiscal representative in Romania for claiming VAT. Taxpayers established outside EU and not established or have a fixed place in an EU state in case they claim for VAT in Romania have the obligation to appoint a representative person in Romania for VAT refund purposes.
Eligibility for refund
Foreign taxable persons are given the right to recover Romanian VAT, if the following conditions are met:
- the business is not registered, liable or eligible to be registered for VAT in Romania;
- the business has no residence, seat or permanent establishment in Romania, and
- the business has not rendered taxable supplies in Romania, except for the activities listed in the
Romanian VAT law provisions, e.g. VAT exempt transport services and transport accessory services according to Romanian Fiscal Code, delivery of goods and supply of services for which the VAT beneficiary is liable to account the tax (reverse charge).
The reciprocity is available for non - EU taxpayers. A non-EU taxpayer who is not required to register for VAT purposes in Romania can ask for VAT refund only if a Romanian taxpayer would have the same right regarding VAT refund in the respective non-EU country. It is not clear yet whether Romania will conclude agreements with other countries in this respect.
For quarterly submission, the application must cover a period of not less than three consecutive
calendar months (e.g. from January 1st until March 31st) in one calendar year or not more than one calendar year. However, applications may relate to a period of less than three months where the period represents the remaining of a calendar year (e.g. from November 1st until December 31st).
Such applications may also relate to invoices or import documents not covered by previous applications and concerning transactions completed during the calendar year in question.
The application must be submitted to the tax authorities within six months of the end of the calendar year in which the tax became chargeable, i.e. by June 30th of the following year. Late claims are not accepted. An extension of this time limit is not possible.
Refunds and appeals
The decision concerning the application will be announced within 6 months of the date when the application, accompanied by all necessary supporting documents required for examination of the application, is submitted to the tax authorities.
When the authorities request additional information, the 6 months period is suspended commencing on the date the request for information is sent to the claimant and ending on the date on which the claimant has met his obligation to provide the necessary information. No specific provisions in the VAT Title / Fiscal Code, however general procedure rule.
If the refund is granted, it will be made in RON (Romanian Lei) in an account opened in Romania and indicated by the representative (for non - EU countries).
For EU countries, refunds shall be repaid in RON in an account indicated by the taxable person either in Romania or in the Member State where he is established.
The bank charges for the transfer will be payable by the applicant. If the refund is not granted, the grounds for refusal of the application will be stated. Appeals against such refusals may be made to the tax authorities within 30 days of the date of notification (tax assessment) issued by the tax authorities.
All relating documents and evidences must be enclosed to the request. If this appeal is without success, the national court may be addressed.