Do you own a business in Romania and have to pay value added tax (VAT) to the Romanian state? Did you know that more than 50% of the Romanian companies use the VAT refund rights to optimize their cashflow?

From this point of view, it is very important that you know your company can recover the VAT paid for certain goods and services purchased.

To understand what the VAT reimbursement procedure entails, but also what the applicable rules are for VAT refund in Romania, we have prepared an informative and practical short guide for you.

In short, what is a VAT refund?

The process of VAT refund in Romania involves the reimbursement of already paid VAT (value added tax), at the request of the companies, in situations where the amounts of VAT collected from sales are lower than those paid as result of purchases made. The refund of VAT can be requested by companies through tax returns 300 or 318, from the Romanian State Budget.

In Romania, according to the tax legislation in force, there is a standard VAT rate of 19%. At the same time, the Romanian state established special quotas of 9% for food, non-alcoholic beverages, medicines, prostheses, respectively 5% for publications, hotel and accommodation services, audiobooks, firewood and home purchase.

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Business adviser & entrepreneur

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