Changes in VAT and ECSL returns

The VAT return changes reflect the standard VAT rate update introduced last January  2017.

The new forms are available in the website of the Romanian tax authorities . They are currently only available in Romanian, but please contact us if you would like to receive a translation of these forms.

New VAT registration process in Romania

In addition to the changes on VAT and ECSL forms, the authorities also updated the VAT registration process in Romania.

As from 1 February 2017, businesses are no longer required to submit the Form 088, which is a declaration of intention to make taxable transactions in the country. These form required several documents to be attached proving the intention to have activities in Romania, which was time consuming and required several contacts with potential clients and suppliers.

Once the application has been submitted, and in case there is a first rejection of this application, the authorities must allow appeals to this first decision during 45 days before the rejection is considered final.

Romania was one of the few countries (together with Italy and Spain) requiring a separate application to be submitted in order to register a company in the VIES database. This requirement has been cancelled with effect from January 2017.

Romania cancels VAT number for businesses without activities

The Romanian authorities have also announced plans to automatically cancel VAT numbers that do not have any activities in Romania.  In case a VAT number is cancelled, the taxpayer will have the right to deduct any outstanding input VAT in a VAT return submitted after the registration.