The Threshold for VAT Registration Will Grow at 300,000 Lei

Written by: Bridgewest

The VAT registration rules for small companies in Romania have been recently changed, meaning that the threshold will grow from 220.000 lei to 300.000 lei. This rule will be applicable starting with April 2018, but before it gets implemented, we strongly recommend you address your inquiries to our Romanian accountants at any time.

New rules linked to VAT threshold in Romania

Each company in Romania must be registered for VAT purposes. In this sense, if you would like to set up a business, please bear in mind that the obligation of registering for VAT purposes starts with a threshold of 300.000 lei. In other words, the VAT is payable by companies with incomes above 300.000 lei, growing from 220.000 lei as it was imposed recently. This rule is applicable starting with 1st of April 2018.
Instead of dealing with possible misunderstandings about the taxation regime in Romania, we suggest you talk to our accountants in Romania. Our team can help entrepreneurs register for tax purposes and moreover, they can perform audits in Romania, whether the company is small or large.

A tax relief for many entrepreneurs in Romania

The new VAT rule is seen by many as a tax relief because they will qualify for a bigger threshold which allows them to invest their capital in further business developments. Growing from 220.000 lei to 300.000 lei means that small entrepreneurs can benefit from a tax relief like the VAT, starting with April 2018 when the new law enters into force. The Ministry of Public Finances in Romania put on a debate the new VAT law at the end of 2017 as a measure to sustain the small entrepreneurs and after the agreement made in this sense by the European Union. Entrepreneurs in Romania, whether nationals or from abroad benefit from several incentives offered by the Romanian government and the VAT was in most cases the preferred tax relief that helped business persons focus on other targets.
For more information about the threshold for VAT in Romania, we invite you to contact our team of accountants in Romania.