The law raises the VAT exemption threshold for small businesses to RON 395,000, with the SME scheme ceasing once national or EU turnover exceeds EUR 100,000.
Romania’s government has published Government Ordinance No. 22 (GO No. 22/2025) in Official Gazette No. 806 on 29 August 2025, which includes amendments to the VAT section of the Fiscal Code, as approved by the Fiscal Code (Law 227/2015).
This follows the Romanian government’s publication of a draft law for public consultation on 20 August 2025, which includes modifications to the VAT title of the Fiscal Code. The draft law raises the VAT exemption threshold for small businesses to RON 395,000, with the SME scheme ceasing once national or EU turnover exceeds EUR 100,000.
GO No. 22/2025 transposes the Amending Directive to the VAT Directive (2020/285) on the special VAT scheme for small enterprises, which EU Member States were required to adopt by 31 December 2024 and apply from 1 January 2025.
Additionally, GO No. 22/2025 includes the Amending Directive Updates EU Directive 2022/542 by clarifying VAT rules on the place of supply for virtual and live streaming events and extending the margin scheme to cover works of art sold to taxable dealers by non-dealer taxable persons.
GO No. 22/2025 maintains the draft bill’s provisions but adds a measure postponing until 31 December 2025 the 20-day response deadline to RO E-VAT notices and related sanctions.
