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New criteria for VAT purposes registration

Order no. 2795/2011 of the Minister of Public Finance, regulating the criteria for VAT purpose registration, was published in the Official Gazette no. 824 of November 22, 2011 [in Romanian, Ordin nr. 2795 din 10 noiembrie 2011 privind stabilirea criteriilor pentru conditionarea inregistrării in scopuri de TVA].

Order no. 2795/2011 repeals Order no. 1984/2011, provading a new registration procedure and provides in detail the criteria for the approval of the VAT purpose registration request.

The new criteria are applicable only to the Romanian legal entities which are incorporated as per Companies Law no. 31/1990. The procedure is not applicable to the Romanian subsidies of foreign companies, to associations and foundations, or to individuals performing independent activities. It is applicable only for the VAT purpose registration at the commencement of the activity or when the company chooses to register as a VAT subject even if the relevant turnover is less than the exemption threshold (Lei 119,000 or EUR 35,000).

The Order sets forth also the content and the approval procedure of the request by the relevant fiscal authorities.

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