A Brief on the Modifications in Romania’s VAT Legislation

A Brief on the Modifications in Romania's VAT Legislation
The Government of Romania has introduced an array of changes to its VAT legislation. The amendment includes an
increase in the VAT registration threshold, tax authority's right to de-register taxpayers and VAT related deductions for
purchase of vehicles.
Revised VAT registration threshold
The VAT registration threshold has been increased from 35,000 to 65,000, effective from July 1, 2012.
Taxpayers who have declared or realised an annual turnover not more than 65,000 may apply to register
for VAT on a voluntary base, excluding those who supply intra-community deliveries of new means of
transportation.
For taxpayers with a turnover not more than 65,000, obligations for tax declarations have been made simpler, and in
order to apply these regulations, transitional provisions have also been provided.
De-registration of VAT
Romanian tax authorities hold the right to de-register taxpayers who do not, in a period of six months:-
Submit VAT returns,
Disclose their VAT return acquisitions or deliveries of goods and rendering of services.
VAT Deduction for Vehicles
Only 50% of input VAT for acquisitions of vehicles and other expenses linked to these vehicles will be deductible for VAT
calculation purpose with effect from July 1, 2012.
100% of Input VAT will be deductible if vehicles are used:
For emergency services, safety and protection, courier activities
For sales persons and acquisitions
For transportation services rendered by authorised companies
For paid rendering of services, according to the object of activity of companies, and
For to-be-leased vehicles
For vehicles considered as goods for trading activities.
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