The Romanian Intracommunity VAT number, often referred to by the term “RO TVA Intracommunautaire,” is an essential identification code for businesses operating in Romania that wish to trade goods or services with other countries within the European Union (EU). This identification ensures that tax authorities can track cross-border transactions and that businesses can benefit from specific tax exemptions. Understanding how this system works is vital for staying compliant with both Romanian and European tax laws.
What is the RO VAT Intracommunity Number?
In Romania, a standard VAT (Value Added Tax) number is assigned to companies registered for tax purposes. When a Romanian company intends to engage in trade with other EU member states, it must ensure its VAT number is validated for intracommunity transactions. This is often called the “RO number” because it adds the country prefix “RO” before the company’s unique tax identification code (CUI).
This system is part of the VIES (VAT Information Exchange System), an electronic database that transmits information regarding the VAT registration of companies across the EU. Having a valid RO VAT number allows a business to apply the “reverse charge” mechanism, which means VAT is not charged on the invoice between two EU-registered businesses, as the buyer accounts for the tax in their own country.
Who Needs an Intracommunity VAT Number in Romania?
Not every business in Romania automatically has an intracommunity VAT number. Whether you need one depends on your business structure and the volume of your international trade. Generally, you will need this registration if you fall into one of the following categories:
- VAT-Registered Companies: If your company is already registered for standard VAT in Romania (Plătitor de TVA), you are usually eligible to perform intracommunity transactions, but you must ensure your status is active in the VIES database.
- Small Businesses (Non-VAT Registered): Small companies that are not registered for standard VAT in Romania because they are below the turnover threshold must apply for a “Special VAT Number” if they wish to buy services or goods from the EU that exceed certain annual limits.
- Service Providers: If you provide services to a client in another EU country (such as consulting, software development, or marketing), you must have a valid intracommunity VAT ID to issue an invoice without charging Romanian VAT.
- Acquirers of Goods: If you purchase goods from other EU countries and the total value exceeds 10,000 EUR (34,000 RON) in a calendar year, registration becomes mandatory.
The Difference Between Standard and Special VAT Registration
It is important to distinguish between being a full “VAT payer” and having a “Special VAT number for intracommunity transactions.” A full VAT payer collects VAT on domestic sales and can deduct VAT on purchases. This status automatically allows for EU trade once validated.
A business with a “Special VAT number” remains a non-VAT payer for domestic transactions within Romania. They use the special RO number only for their EU-based purchases or sales of services. This allows smaller businesses to interact with the European market without the administrative burden of full VAT registration in Romania.
How to Obtain an Intracommunity VAT Number in Romania
The process for obtaining or validating your RO VAT number is handled by ANAF (Agenția Națională de Administrare Fiscală), the Romanian tax authority. Depending on your current status, the steps may vary slightly.
For Companies Already Registered for VAT
If your company is already a VAT payer in Romania, you are typically included in the VIES system automatically upon registration. However, you should always verify your status on the official VIES website. If your number does not appear as “Active,” you may need to file an update with your local ANAF office to ensure your records are synchronized with the EU database.
For Small Businesses (Non-VAT Registered)
If you are not a VAT payer but need to trade within the EU, you must follow these steps:
- Submit Form 700: This is the electronic form used to register or modify tax information. You will use this to request a special VAT code for intracommunity transactions.
- Wait for Approval: ANAF will process the request and issue a secondary VAT certificate. This code will start with “RO” followed by your CUI digits.
- Use the Code Correctly: Remember that this code is only for EU transactions. For domestic Romanian invoices, you continue to use your CUI without the “RO” prefix.
How to Verify a Romanian VAT Number
Before conducting business with a partner in Romania or another EU country, it is a best practice to verify their VAT status. This protects you from tax fraud and ensures that the reverse charge mechanism is applied legally. To verify an “RO” number, follow these steps:
- Visit the official VIES (VAT Information Exchange System) website provided by the European Commission.
- Select “RO-Romania” from the member state drop-down menu.
- Enter the VAT number (the digits following the RO prefix).
- Click “Verify” to see if the number is currently active and to view the registered name and address of the business.
If the system returns an “Invalid” result, you should not proceed with a VAT-exempt transaction. Contact your business partner to see if they have a new number or if there is a clerical error in their registration.
Invoicing with an RO Intracommunity VAT Number
When you have a valid intracommunity VAT number and you are selling to another EU-based business with a valid VAT ID, your invoice must follow specific rules. This is known as an intracommunity supply of goods or services.
Your invoice should include both your RO VAT number and the customer’s VAT number (including their country prefix, like DE for Germany or FR for France). You must also include a mention that the transaction is subject to the “Reverse Charge” mechanism (Taxare inversă). This informs the tax authorities that the buyer is responsible for reporting and paying the VAT in their respective country.
Failure to include these details or using an invalid VAT number can lead to penalties from ANAF. You might also be forced to pay the VAT yourself if you cannot prove that the buyer was a valid taxable person in another EU state.
Important Compliance and Reporting
Once you are registered for intracommunity transactions, you have additional reporting obligations in Romania. You cannot simply trade and forget the paperwork. The most important document is the Declaratia 390 (VIES Declaration).
This declaration must be filed monthly by the 25th of the following month for any period in which you conducted EU trade. It lists all your intracommunity acquisitions and supplies. ANAF uses this data to cross-reference with the reports filed by your business partners in other EU countries. If the numbers do not match, it may trigger a tax audit.
Common Questions About RO TVA Intracommunautaire
Does the RO prefix always mean I am a VAT payer? No. As mentioned earlier, you might have a special RO number for EU trade while remaining a non-VAT payer for your Romanian sales. Always check your specific registration type.
What happens if I forget to file Declaration 390? Late filing or failure to file can result in significant fines. ANAF is very strict about cross-border reporting because it is a key tool in preventing VAT fraud across the European Union.
Can I use my RO number for purchases from outside the EU? No. The intracommunity VAT system is specifically for trade between EU member states. For purchases from the USA, China, or the UK (post-Brexit), different import VAT and customs rules apply.
Conclusion
Navigating the requirements for an RO VAT Intracommunity number is a critical step for any Romanian business looking to expand into the European market. By ensuring your registration is active in the VIES system and following the correct invoicing and reporting procedures, you can avoid unnecessary taxes and legal complications. Always stay updated with ANAF regulations, as tax laws can change frequently.
If you found this guide helpful, you may want to explore our other articles on how to register a company in Romania or understanding EU tax regulations for freelancers to further simplify your business journey.