Romania VAT Rates Explained: How Value Added Tax Is Calculated

Key Points

• Romania applies a 21% standard VAT in 2026, with reduced rates and exemptions for specific goods and services.
• VAT obligations depend on turnover thresholds, transaction type, and whether activities are domestic or intra-EU.

VAT is an indirect consumption tax added to most goods and services, collected by businesses and ultimately paid by consumers.

It is a major source of government revenue and influences pricing, compliance, and cross-border trade across the economy.

In Romania, VAT applies to supplies of goods, services, and imports, following rules set by the Fiscal Code and EU directives.

The system is administered by ANAF, which oversees registration, reporting, collection, audits, and refunds.

VAT framework in Romania

The standard VAT rate in Romania is 21% in 2026, increased from 19% on August 1, 2025.

A reduced VAT rate of 11% applies to certain essential goods and services, as detailed by official ANAF guidance.

Some sectors, including healthcare, education, financial services, and cultural activities, benefit from VAT exemptions under the law.

VAT is charged at each stage of the supply chain, while businesses deduct input VAT to avoid cumulative taxation.

Consumers bear the final cost of VAT, as they cannot deduct the tax paid on purchases.

Registration, calculation, and special rules

Businesses and self-employed individuals must register for VAT when taxable turnover exceeds 395,000 RON within 12 months, according to Fiscal Code amendments effective September 1, 2025.

Entities below the threshold may opt for voluntary VAT registration to improve commercial positioning or reclaim input VAT.

VAT is calculated by multiplying the net price by the applicable VAT rate, such as 0.21 for standard-rated supplies.

For prices that already include VAT, the net amount is determined by dividing the gross price by 1.21.

Romania allows a cash accounting VAT scheme, where VAT becomes payable only upon payment collection, subject to eligibility rules.

This optional scheme is available to entities with prior-year turnover below 4.5 million RON, under conditions outlined in the Fiscal Code.

VAT treatment varies by sector, with specific rules for real estate, food products, and HoReCa services.

Cross-border EU transactions follow intra-community VAT rules, including zero-rating between VAT-registered entities and use of the reverse charge mechanism.

Incorrect registration, misapplied rates, and improper reporting remain common VAT compliance risks monitored by tax authorities.