Import Tax, VAT, GST & Sales Tax on Imported Goods in Romania

When importing goods into Romania, it is essential to understand the difference between duty and tax. Duty refers to the customs charges levied on imported goods, which varies by product. On the other hand, VAT (Value-Added Tax) is a consumption tax applied to the value of goods imported into Romania. The standard VAT rate in Romania is 19%, which is applied to most goods and services. Understanding this difference is crucial for importers to ensure compliance with Romanian tax regulations and to avoid any potential penalties or fines.

VAT on imports in Romania is calculated based on the value of the goods imported, including any applicable duty. The VAT is paid by the importer at the time of customs clearance. The 19% VAT rate is applied to the total value of the imported goods, which includes the cost of the goods, duty, and any other applicable charges. For example, if the total value of the imported goods is 1,000 RON, the VAT payable would be 190 RON (19% of 1,000 RON). It is essential for importers to factor in the VAT cost when calculating the total cost of importing goods into Romania.

The tax base for VAT on imports in Romania is the CIF (Cost, Insurance, and Freight) value of the goods, plus any applicable duty. The CIF value includes the cost of the goods, insurance, and freight charges. The duty is added to the CIF value to determine the total value of the imported goods, which is then subject to the 19% VAT rate. For instance, if the CIF value of the goods is 800 RON and the applicable duty is 100 RON, the total value of the imported goods would be 900 RON (800 RON + 100 RON), and the VAT payable would be 171 RON (19% of 900 RON).

VAT on imports in Romania applies to most goods and services, but there are some exemptions. For example, certain goods such as food, medicine, and educational materials may be exempt from VAT or subject to a reduced VAT rate. Additionally, some importers, such as diplomatic missions and international organizations, may be exempt from paying VAT on imports. It is essential for importers to check with the Romanian tax authorities to determine if their goods are subject to VAT and to ensure compliance with all applicable tax regulations. Importers should also be aware that VAT exemptions may be subject to specific conditions and requirements, and failure to comply with these conditions may result in the loss of the exemption.