Updated for 2026. VAT rates and rules in Romania have changed in recent years.
VAT (Value Added Tax) in Romania is one of the most important taxes for businesses.
If you understand how it works early, you avoid costly mistakes later.
This guide explains VAT rates, registration rules, and how VAT works in practice.
What is VAT in Romania?
VAT (TVA in Romanian) is a consumption tax applied to most goods and services.
Businesses:
- collect VAT from clients
- deduct VAT from expenses
- pay the difference to the state
VAT rates in Romania (2026)
The main VAT rates are:
- 21% – standard rate (applies to most goods and services)
- 11% – reduced rate (applies to food, medicines, water, books, tourism, etc.)
A 9% rate still exists only in limited transitional cases, mainly related to certain real estate transactions.
👉 Most situations now use either 21% or 11%.
When do you need to register for VAT?
You must register for VAT if your annual taxable turnover exceeds 395,000 RON.
This threshold has applied since September 1, 2025. Voluntary VAT registration is also possible before reaching the threshold.
You can also register voluntarily if:
- you work with VAT-registered companies (B2B)
- you want to deduct VAT from expenses
- you plan to scale your business
How VAT works in practice
Example:
- You invoice EUR 1,000 + VAT (21%)
- Client pays EUR 1,210
- You collect EUR 210 VAT
Then:
- You subtract VAT from your expenses
- You pay the difference to the state
Who benefits from VAT registration?
VAT registration is useful if:
- you have significant business expenses
- your clients are companies
- you operate in B2B environments
- you want to appear more professional
Who should avoid VAT (initially)?
You may avoid VAT if:
- you work mainly with individuals (B2C)
- your turnover is low
- you want simpler administration
VAT for freelancers (PFA)
Freelancers must consider VAT if:
- they exceed the threshold
- they work with EU clients
- they provide cross-border services
VAT rules can become complex for EU transactions.
VAT for companies (SRL / LLC)
For companies:
- VAT impacts pricing
- affects cash flow
- requires proper accounting
Incorrect VAT handling is one of the most common causes of penalties.
Common VAT mistakes
- late registration
- incorrect invoices
- missing VAT returns
- misunderstanding EU VAT rules
- mixing personal and business expenses
Do you need an accountant for VAT?
Yes.
VAT is one of the most error-prone areas in Romanian taxation.
A good accountant helps you:
- register correctly
- file declarations on time
- optimize VAT where possible
- avoid penalties
Final thoughts
VAT in Romania is manageable if you understand the rules early.
If you are unsure:
👉 Talk to an accountant and set up VAT correctly from the beginning.