Higher threshold for VAT registration of Romanian companies
There is a new, higher threshold for VAT registration of Romanian companies since April 1st. The change is published in the Romanian State Gazette on March 23rd, 2018.
According to Law No. 72 on the amendment and addition to Law 227/2015 regarding the Tax Code, the current threshold of EUR 65 000 (RON 220 000) of turnover for the last 12 months is increasing to EUR 88 500 (RON 300 000). The legislation changes had to enter into force on January 1st this year, but because they were postponed by a few months, the legislation contains transition clauses:
– companies, established before December 31st, 2017, will have to make a VAT registration only if they are above the RON 220 000 ceiling for the period from the beginning of the year to the month which follows the entry into force of the law (i.e. to May 1st, 2018). In case they have not gotten over this amount for the reference period, the taxable persons have to make a VAT registration when they go over the threshold of RON 300 000 before December 31st, 2018.
– companies, established in the period from January 1st to May 1st, 2018, have the obligation to register under VAT only if they go over the RON 220 000 ceiling during that period. In case they have not gotten over this amount for the reference period, the taxable persons have to make a VAT registration when they go over the threshold of RON 300 000 before December 31st, 2018.
– companies, established after May 1st, 2018, will have to register for the purposes of VAT only if they go over the threshold of RON 300 000 before December 31st, 2018.
The law also foresees, that legal entities, which want to remain registered for the purposes of VAT, even if they don't go over the limit of RON 300 000, will be able to do so after submitting an application.
