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11.1. VAT on the Supply of Goods by Non-Residents

The supply of goods in Romania by a non-resident is subject to VAT.

When a non-resident has a fixed establishment in Romania, the establishment must register and account for VAT when the registration threshold hold is met. An establishment will only be deemed a fixed establishment for VAT purposes when the establishment has the resources to perform taxable supplies of goods and is involved in the actual supply.

When a non-resident has no establishment in Romania (or deemed not to have as above), they must register for VAT regardless of meeting the threshold unless the supplies are subject to reverse charge or are distance sales and the threshold has not been met.

Tax Representative

The appointment of a tax representative is required for non-residents established in a non-EU country and with no establishment in Romania. If a non-resident is established in an EU Member State, they are not required to appoint a tax representative, but may opt to do so.

Reverse Charge

A reverse charge applies for certain goods until 31 December 2026 (extended from 30 June 2022), whereby the recipient is responsible for accounting for the VAT and making payment whether the supplier is registered or not. Such supplies include:

  • Certain cereals and technical plants, including oilseeds and sugar beet, which are not in principle intended for final consumers;
  • Transfer of greenhouse gas emission certificates;
  • Supply of electricity to a taxable person trading in electricity;
  • Transfer of green certificates for promoting the production of energy from renewable energy sources;
  • Supply of electronic devices such as mobile phones, integrated circuit devices, game consoles, laptops and tablets if the value exceeds RON 22,500, excluding VAT; and
  • Delivery of natural gas to a taxable trader established in Romania for resale.

Distance Sales

Until 30 June 2021, non-resident suppliers making distance sales from another EU country were not required to register unless the sales exceed a threshold of EUR 35,000 Romanian currency equivalent.

Effective 1 July 2021, the distance sales threshold of EUR 35,000 is abolished and the destination principle for distance sales of goods applies instead. Thus, supplies are subject to VAT in the Member State of the recipient, regardless of their distance sales volume.

COVID-19 Emergency Measures

In response to the COVID-19 pandemic, Romania announced the following measures:

  • A deferral of the payment of VAT until 30 days after the end of the state of emergency on the import of COVID-19 test kits, protective clothing, protective equipment, disinfectants and sterilization products, medical equipment and supplies, protective mask production machines and medications (excluding protection masks and ventilators used in intensive care units) to treat people who have contacted the virus; and
  • An exemption from VAT until 1 October 2020 on the imports and intra-Community supplies and acquisitions of protection masks and ventilators used in intensive care.