Romania has implemented various tax amendments for 2024 that include new turnover taxes, VAT rate changes, and mandatory electronic invoicing.
These tax changes are:
- A new regulation that imposes a 1% minimum turnover tax on companies with an annual turnover exceeding EUR 50 million in the previous year has been introduced. This tax applies when the standard corporate tax is lower than the minimum turnover tax, including for tax groups. However, oil and gas companies and banks are exempt from this requirement.
- An additional tax is being introduced for banks alongside corporate tax. The additional tax rate will be 2% in 2024 and 2025. The tax rate will be reduced to 1% from 2026. This tax will be calculated based on the banks’ turnover, which includes dividends, interest, commissions, gains or losses from financial assets, and other sources.
- In addition to corporate tax, a new tax has been introduced for the oil and gas sectors that has an annual turnover exceeding EUR 50 million from the previous year. This additional tax is fixed at a rate of 0.5% on turnover.
- A two-rate system has been introduced for micro-enterprises. If the annual turnover does not exceed EUR 60,000, a 1% tax rate applies. However, if the annual turnover exceeds EUR 60,000, a 3% tax rate is applicable.
- From 1 January 2024, all companies and non-residents registered for VAT in Romania must comply with the national electronic invoicing system, RO e-Factura. In accordance with the amendment, companies and non-residents are obligated to report all invoices issued to other companies and public institutions through the RO e-Factura system. There is a grace period until 31 March 2024, and penalties may apply thereafter. Furthermore, starting from 1 July 2024, using the RO e-Factura system for issuing invoices will be mandatory.
The latest tax changes will go into effect from 1 January 2024.
