Amendments regarding the VAT registration threshold
In the Official Gazette no. 806 of August 29, 2025, Government Ordinance no. 22/2025 was published, whereby starting from September 1, 2025, a series of amendments were made regarding the exemption threshold for small enterprises and VAT registration under Law no. 227/2015 on the Fiscal Code:
- Increase of the annual exemption threshold
Transactions resulting from economic activities for which the place of supply/performance is considered to be abroad, if the tax would be deductible in case such transactions had been carried out in Romania (e.g. services taxable at the place of establishment of the beneficiary), will no longer be taken into account when calculating the threshold.
Taxable persons who exceeded the RON 300,000 threshold in August 2025 are not required to apply for VAT registration unless they exceed the new annual threshold of RON 395,000.
If in August 2025 the threshold of RON 395,000 was also exceeded, VAT registration must be applied for by September 10, 2025, with the normal taxation regime applicable from that date.
- Deregistration of taxable persons from the VAT register
- they did not exceed the threshold of RON 300,000 in 2024; and
- by the date of the request, they have not exceeded the threshold of RON 395,000.
For taxable persons who exceeded the threshold of RON 300,000 before August 1, 2025, the rules in force at the date of exceeding the threshold apply (they do not benefit retroactively from the new threshold).
- New rules regarding VAT registration
The normal taxation regime applies from the date of exceeding the threshold, starting with the transaction that leads to exceeding it (previously from the first day of the calendar month following the one in which the threshold was reached or exceeded).
Optionally, the taxable person may apply the normal taxation regime also for transactions carried out before the transaction that led to exceeding the exemption threshold, provided they were made on the same day.
- Application of the special regime for small enterprises for operations carried out in other Member States than the one where they have their business seat
- the annual turnover at EU level of the respective taxable person does not exceed EUR 100,000 in the year in which the exemption is requested and in the previous calendar year;
- the value of supplies of goods and services performed in the Member State where the taxable person intends to apply the exemption does not exceed the exemption threshold applicable to taxable persons applying the special exemption regime for small enterprises established in that Member State.
- the annual turnover at EU level does not exceed EUR 100,000 in the year in which the exemption is requested and in the previous calendar year;
- the value of supplies of goods and services performed in Romania does not exceed the VAT exemption threshold provided by art. 310 para. (1), in the year in which the exemption is requested and in the previous calendar year.