SME Scheme – General features
Exemption
It is possible to opt for the SME scheme in Romania.
Transactions excluded from the SME scheme
The following transactions are excluded from the SME scheme:
- Exempt cross-border supplies of new means of transport made from one Member State to another.
National annual threshold
The annual national threshold in Romania is 395.000 RON.
In Romania, there are no sectorial thresholds.
The information on the national annual threshold is available on TEDB.
Domestic SME scheme
Simplified VAT obligations
A small enterprise established in Romania who applies the SME scheme in Romania only (domestic SME scheme) is released from the following VAT obligations:
- to state the beginning of its activity
- to VAT register
- to submit periodical VAT returns
- to issue full invoices
Cross-border SME scheme
The cross-border SME scheme applies in the following situation(s):
- The small enterprise applies the SME scheme in other Member States than the Member State of establishment, or;
- The small enterprise applies the SME scheme both in the Member State of establishment and in other Member State(s).
Simplified VAT obligations
The VAT registration in each Member State where the small enterprise applies the SME scheme is replaced by a single prior notification to be submitted in the Member State of establishment.
The periodical VAT returns are replaced by a single quarterly report for all Member States to be submitted in the Member State of establishment.
Currency
The values of supplies of goods and services to indicate in the prior notification, in the update to a prior notification and in the quarterly reports must be in EUR.
Way of submission
The prior notification, the update to a prior notification and the quarterly reports should be submitted by electronic means on NAFA web portal (page will be updated).
Additional simplified VAT obligations
Exempt small enterprises applying the cross-border SME scheme in Romania are released from the following VAT obligations:
- to issue full invoices
Loss of simplified VAT obligations
Non-compliant small enterprises may be required:
- to VAT register
- to submit periodical VAT returns
Transitional period
Romania does not apply any transitional period in case the national annual threshold is exceeded during the current calendar year.
Practical examples of the application of the transitional period and its consequences are available in the Explanatory Notes.
Quarantine
Quarantine period in case of exclusion from the SME scheme
Small enterprises excluded from the SME scheme in Romania are not able to benefit from that exemption during a quarantine period.
In Romania, in case of exclusion from the SME scheme, the small enterprise excluded from the SME scheme cannot benefit from this exemption during a quarantine period of 1 year.
You can consult the quarantine period applicable in Romania on TEDB database.
Practical examples on the application of the quarantine period and its consequences are available in the Explanatory Notes.
Quarantine period in case of voluntary departure from the SME scheme
No quarantine period imposed.
Appeals
Domestic SME scheme
Appeals should be addressed to Romania (MSEST).
Cross-border SME scheme
Member State of establishment (MSEST)
Appeals related to the following topics should be addressed to Romania:
- Union annual turnover
- Prior notification, correction and update to a prior notification
- Quarterly reports and correction of a quarterly report
- Exclusion for exceeding the Union annual turnover
- Sanctions for failure to submit prior notification, and update of prior notification or quarterly report or final report
Member State of exemption (MSEXE)
Appeals related to the following topics should be addressed to MSEXE:
- National annual turnover
- Denial to access the cross-border SME scheme in MSEXE
- Loss of simplified VAT obligations in respect of MSEXE
- Exclusion for exceeding the national annual threshold/sectoral threshold in MSEXE