NNDKP Tax Flash No.2/2025 – Ordinance no. 22 for the amendment and completion of the Tax Code, with an impact on small enterprises, was published in the Official Gazette no. 806/29.08.2025
Ordinance no. 22 for the amendment and completion of the Tax Code, with an impact on small enterprises, was published in the Official Gazette no. 806/29.08.2025
The Ordinance introduces several amendments to the Tax Code to transpose the European Directives.
The changes primarily impact the VAT regime of small enterprises and electronic services.
Increase in the VAT exemption threshold
The threshold for applying the special VAT exemption regime increases from RON 300,000 to RON 395,000, starting September 1, 2025.
The taxable person must apply for the VAT registration no later than the date on which the threshold is exceeded, VAT being applicable starting with the transaction exceeding the threshold.
Transitional rules – August and September 2025:
- If only the threshold of RON 300,000 is exceeded in August 2025, but not the one of RON 395,000, the VAT registration is not mandatory.
- However, if the threshold of RON 395,000 is exceeded in August 2025, the taxpayer must:
- apply for the VAT registration by September 10, 2025 and apply the normal taxation regime starting with this date;
- the registration will be considered valid starting September 10, 2025.
Special VAT Exemption Regime for Small Enterprises in the EU – Transposition of Directive (EU) 2020/285
The special VAT regime for small enterprises has been modified, allowing them to benefit from VAT exemption in other EU member states.
Key changes:
- Small enterprises in Romania can apply the special regime in other EU member states, and small enterprises from other EU member states can benefit from VAT exemption in Romania, if:
- they do not exceed EUR 100,000 in turnover at EU level in the year in which the exemption is requested and in the previous calendar year; and
- comply with the exemption threshold in the member state concerned.
- A quarterly notification and reporting mechanism is introduced for companies applying this regime in multiple member states.
New rules on the place of supply for electronic services
The Ordinance transposes into national legislation the European provisions regarding the determination of the place of supply for electronic services and events with virtual attendance.
Entry into force
The changes will take effect on September 1, 2025.
The pre-filled RO e-VAT return
The provisions regarding the obligation to transmit the results of the checks carried out on the differences communicated through the “RO e-TVA Compliance Notification” are suspended until December 31, 2025.
The Romanian version of this newsletter is available here.
