For the past few years, more and more companies have been selling services or products online to individual customers in the E.U. In Romania, online selling has grown at a steady pace. That’s why companies need to know the rules for applying VAT in these situations, in order to avoid heavy fines.
Online/distance selling in Romania is a fiscal classification and is defined in the Fiscal Code by art. 266 alin. (1) no. 35.
It is defined as a delivery of goods shipped or moved from one member State to another member State by the supplier or another person on his behalf to a purchaser, individual or company who does not communicate a valid VAT code. For example, if you have an e-shop and some of your customers are outside Romania, the deliveries to those customers fall within the domain of online/distance selling.
It is possible to identify situations where the VAT differs for both the seller and the buyer. There is a threshold for distance selling for each country in the European Union. For example, the maximum sales threshold for a member supplier to customers in Romania is 35.000 € or 118.000 Ron.
Distance selling also has some specific rules: if the sales threshold is exceeded in different EU countries, including Romania, VAT registration is mandatory.
We recommend to analyse sales to determine the threshold from U.E. countries and to consider including VAT rates as applied in each member state.
ASD Group can help you with all the procedure to sell safely in Romania and the EU if you provide goods or services online or if you intend to. Contact our experts!