How VAT (TVA) Works in Romania (2026): 21% Standard Rate, 11% Reduced Rate and Registration
Romania applies two main TVA (Taxa pe Valoarea Adaugata, Value Added Tax) rates in 2026: a standard rate of 21%, raised from 19% on 1 August 2025, and a single reduced rate of 11%, which replaced both the former 5% and 9% reduced rates on the same date. Businesses must register for TVA when taxable annual turnover exceeds 395,000 RON. Always verify with ANAF (anaf.ro) or an accountant.
The two TVA rates in Romania in 2026: 21% standard and 11% reduced
Romania applies TVA (Taxa pe Valoarea Adaugata, Value Added Tax) under two main rates from 1 August 2025 onward: Standard rate (21%): the default rate applying to all supplies of goods and services unless a specific reduced rate or exemption applies. It covers most professional services, consumer electronics, clothing, alcohol, tobacco and other goods not specifically listed under the reduced rate. Reduced rate (11%): applies to a defined list of goods and services previously covered by either the 5% or the 9% reduced rate (both abolished on 1 August 2025). Under the consolidated 11% rate, the key categories include: - Food and non-alcoholic beverages for human consumption (previously at 9%) - Restaurant and catering services (previously at 9%) - Hotel and tourist accommodation services (previously at 9%) - Access to cultural events, museums, cinemas, concerts (previously at 5% or 9%) - Social housing below applicable price thresholds (previously at 5%) - Books, newspapers and periodicals (previously at 5%) The specific categorisation of each supply should always be verified against current ANAF guidance, as classification can be disputed. TVA-exempt supplies (scutite de TVA) also exist -- including most financial services, healthcare, education and residential property rental. Suppliers of exempt services generally cannot recover input TVA on related costs. Always confirm the applicable TVA rate for any specific supply with ANAF (anaf.ro) or a qualified TVA adviser.
What changed on 1 August 2025: the end of the 5% and 9% rates
Before 1 August 2025, Romania operated four TVA tiers: 19% (standard), 9% (first reduced), 5% (second reduced), and exemptions. The fiscal consolidation legislation effective 1 August 2025 made two structural changes: 1. Standard rate: increased from 19% to 21%. 2. Reduced rates: the 5% and 9% tiers were abolished and merged into a single 11% reduced rate. Key impacts on common supply categories: Food: previously at 9%, now at 11% -- a 2-percentage-point increase. Restaurant and catering: previously at 9%, now at 11%. Social housing (below price threshold): previously at 5%, now at 11%. Books and press: previously at 5%, now at 11%. Cultural event tickets: previously at 5%, now at 11%. For businesses that operated across the 1 August 2025 transition date or that are reviewing historical transactions, both the old rates and the new rates may apply depending on the tax point (the date the supply is treated as occurring for TVA purposes). Consult ANAF (anaf.ro) or an accountant for any supplies straddling the transition. The rate changes also affect the VAT on inputs: businesses that purchase goods or services previously at 9% or 5% now pay input TVA at 11%, which may affect pricing and margin analysis.
TVA registration: the 395,000 RON threshold and how to register
Not all businesses are required to charge TVA. The mandatory registration threshold in 2026 is a taxable annual turnover of 395,000 RON. Obligation to register: registration is required when total taxable turnover -- the value of all TVA-able supplies including zero-rated ones, but excluding exempt supplies -- in the preceding 12 months exceeds 395,000 RON, or when you reasonably expect to exceed this threshold within the next 30 days. How to register: TVA registration is applied for through ANAF, either at the local fiscal administration office (Administratia Fiscala) or online via the ANAF portal. You must register before making taxable supplies above the threshold, not retrospectively after it has already been exceeded. Once registered you must: - Charge TVA on all taxable supplies at the applicable rate. - Issue TVA invoices (facturi fiscale) meeting all legal requirements. - File periodic TVA returns (Decontul de TVA, Form D300) -- monthly for larger taxpayers, quarterly for smaller ones. - Remit net TVA (output TVA minus recoverable input TVA) to ANAF by the filing deadline. Voluntary registration: businesses below 395,000 RON may register voluntarily. This is beneficial when significant input TVA is paid on purchases or when customers are themselves TVA-registered and can recover the TVA you charge them. Failure to register when required may result in ANAF assessing TVA on all turnover from the date registration was due, plus penalties and interest. Verify the current registration threshold and registration procedures with ANAF (anaf.ro) or an accountant.
How TVA works in practice: output tax, input tax and returns
TVA is a consumption tax collected at each stage of the supply chain. As a TVA-registered business: Output TVA is the TVA you charge on your sales. It is not your revenue -- you collect it on behalf of the state and must remit it to ANAF. Input TVA is the TVA you pay on your business purchases and costs. Subject to restrictions, you can deduct input TVA as a credit against output TVA, provided purchases relate to your taxable business activities and are supported by valid TVA invoices. Net TVA due = output TVA minus recoverable input TVA for the period. If input TVA exceeds output TVA (common for exporters or businesses with large capital investment), ANAF owes you a refund, though TVA refunds in Romania may take time and can be subject to a TVA audit. Filing frequency: monthly for businesses with turnover above approximately 100,000 EUR equivalent in RON; quarterly for smaller registered businesses. ANAF notifies you of your assigned period at registration. Filing deadline: the TVA return (Form D300) and payment are generally due by the 25th of the month following the end of the reporting period. TVA invoices (facturi fiscale) must contain mandatory details including supplier name and CIF (fiscal registration code), TVA registration number (cod de inregistrare in scopuri de TVA), invoice number and date, description of supply, net amount, TVA rate, TVA amount, and gross total. TVA compliance is actively monitored by ANAF. Businesses with mixed taxable and exempt activities, intra-EU transactions, or unusual supply types should engage an accountant or specialist TVA adviser. Always verify with ANAF (anaf.ro).
FAQ
What is the standard TVA rate in Romania in 2026?
The standard TVA rate is 21%, in effect from 1 August 2025 following an increase from the previous 19% rate. This rate applies to all supplies not specifically covered by the 11% reduced rate or by a TVA exemption. Verify the current rate with ANAF (anaf.ro) or an accountant.
Why does Romania now have only one reduced VAT rate instead of two?
As part of fiscal consolidation measures effective 1 August 2025, Romania abolished its previous 5% and 9% reduced rates and merged them into a single 11% reduced rate. The measure was intended to simplify the TVA structure while raising additional budget revenue. Supplies previously at 5% (social housing, books, cultural tickets) and at 9% (food, restaurants, hotels) now all fall under the 11% rate. If your business previously used either reduced rate, verify the current classification of your supplies with ANAF (anaf.ro) or an accountant.
When must a business register for TVA in Romania?
Mandatory TVA registration is required when taxable annual turnover exceeds 395,000 RON. You must register before exceeding this threshold -- or immediately when you reasonably expect to exceed it within 30 days -- not after the fact. Voluntary registration below the threshold is permitted and may be advantageous if you incur significant input TVA or if your clients are themselves TVA-registered. Verify the current threshold with ANAF (anaf.ro).
Can I recover input TVA on all business purchases?
You can generally recover input TVA on purchases directly related to your TVA-able (taxable) business activities and supported by a valid TVA invoice. Input TVA on purchases linked to exempt activities cannot be recovered. If your business has both taxable and exempt supplies, a pro-rata calculation applies. Certain categories are blocked regardless (for example, passenger vehicle costs above defined limits, entertainment expenses). Check ANAF (anaf.ro) for the full list of restrictions or consult a qualified accountant.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.