Romania

March 12, 2019

Located in south east central Europe, Romania is a member of the EU, NATO and the World Trade Organization (WTO). Major trading partners include EU neighbors Germany, UK, Italy, France and Turkey. Romania shares borders with Ukraine in the north, Moldova in the north east, Bulgaria in the south, Serbia in the south west and Hungary in the North West.

In this post, we discuss business tourism and reclaiming VAT\GST in Romania. Keep in mind that regulations may change depending on if you are an EU-based company or not. If you run a company that has as few as two but as many as 50 executives travelling on business at any point, and you don’t always succeed in recovering VAT\GST – then we have a few tips for you.

Romania is a country of varied landscapes including mountains, hills, plains and coastline, attracting business tourism from around the world. Meetings, Incentives, Conventions and Exhibitions (MICE) bring directly about EUR 500 million annually to Romania, a value that, while is small when compared to Western countries, is still demonstrating steady increase in business tourism. In 1998 Romania was making about USD 30 million a year from the events industry, in 2008 about EUR 50 million and in 2013 it reached about EUR 250 million.

According to the International Congress and Convention Association (ICCA) statistical report for 2017, out of the 70 events, most of the events in Romania took place in Bucharest (39 of the 70), the capital being ranked 33th in the top cities of Europe organizing events.

Romania’s currency is the Leu, and VAT\GST rates are as follows:

Standard Rate of 19%

Reduced Rate of 9%

Reduced Rate of 5%

Here are some handy phrases to remember whenever making a business related purchase. When in doubt, ask:

English
Please give me:

  • An original VAT\GST invoice
  • With my company name and address
  • VAT\GST rate and value shown

Romanian:
vă rog să-mi dai:

  • O factură originală cu TVA
  • Cu numele și adresa companiei mele
  • Cota și valoarea TVA afișate

For the complete story on recovering VAT\GST in Romania and other EU countries, download our eBook.
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