September 2025 – The Romanian government
has adopted GEO No. 22/2025 introducing significant amendments to
Romanian VAT legislation and directly affecting small enterprises
and VAT registration procedures. The new rules transpose EU
provisions into domestic law and aim to ensure a more uniform
application of the small business exemption regime across the EU
effective 1 September 2025.
1. Updates to the special VAT exemption regime for small enterprises
Annual turnover limit for VAT exemption eligibility has increased from RON 300,000 to RON 395,000 (approx. EUR 77,000).
Transitory provisions are introduced for companies that exceeded the previous eligibility threshold in August 2025.
2. Cross-border VAT simplification
Romanian taxable persons can apply for the VAT Exemption Regime for small enterprises in other EU Member States, subject to the following conditions:
- EU-wide turnover ≤ EUR 100,000;
- Local eligibility thresholds not exceeded;
- Quarterly reporting and electronic notifications required. Additional instructions will follow on this topic.
Foreign entities can apply the Romanian exemption regime under similar conditions without VAT registration or filing obligations. The Romanian eligibility threshold is stated in point 1 above.
3. Updates regarding VAT place of supply rules
Differentiation between physical and virtual events for
cultural, educational, and entertainment services, i.e., those
services related to events that are organised in a virtual
environment, will be subject to VAT where the beneficiary is
established.
4. Suspension of certain provisions of Government Emergency Ordinance No. 70/2024 regarding RO e-TVA
The obligation to respond to RO e-TVA notices within 20 days, together with the application of the corresponding fines for non-compliance, have been suspended until 31 December 2025.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
