The ceiling for VAT exemption will increase from EUR 65,000 in the present to EUR 85,000 in January, after Romania has received European Commission’s approval for this change, reports Profit.ro.
The equivalent in Romanian currency is calculated at the exchange rate from the date of Romania’s accession to the EU, which was RON 3.3817/EUR 1. The ceiling thus increases from RON 220,000 to RON 300,000, or from EUR 48,000 to EUR 65,400 at the current exchange rate. This means that companies with turnovers of up to EUR 65,400 will be exempt from paying the VAT from January.
The change will allow several companies to avoid VAT payment until the business develops and reaches a certain turnover, tax consultant Cornel Grama told Profit.ro. EC’s decision applies between January 1, 2018, and December 31, 2020.