Sep 12, 2025
The Romanian government has published a comprehensive ordinance regulating the special VAT exemption regime for small enterprises. The regulation, taking effect on September 1, 2025, raises the exemption threshold from 300,000 Lei to 395,000 Lei.
Romania’s tax system for small businesses is undergoing a fundamental transformation. The ordinance signed by Prime Minister Ilie-Gavril Bolojan introduces significant changes to Tax Law No. 227/2015 and transposes EU Directives 2020/285 and 2022/542 into national legislation.
New Threshold and Transition Process
Critical change: The VAT exemption threshold for small enterprises is being raised from 300,000 Lei to 395,000 Lei. Businesses that exceeded the 300,000 Lei threshold in August 2025 can continue benefiting from exemption up to the 395,000 Lei threshold.
Businesses that exceeded both thresholds in August must register for VAT by September 10, 2025. Companies established before 2025 that registered for VAT due to exceeding the 300,000 Lei threshold can apply for exemption between September 1-10.
EU-wide Coordination
The regulation includes special provisions for Romanian businesses operating in other EU member states. Romania-based enterprises with turnover not exceeding 100,000 Euro EU-wide can benefit from small enterprise exemption in other member states.
New procedures: Businesses must provide prior notification to apply exemption in other EU countries and will have quarterly reporting obligations. The system will operate with special identification codes carrying the “EX” suffix.
Transitional Period Applications
Companies established in 2025 that registered due to exceeding the 300,000 Lei threshold can also benefit from the new regulation. The Tax Administration is obligated to resolve all applications during the transition period by month-end.
The ordinance represents Romania’s commitment to harmonizing its small business tax regime with EU standards while providing greater flexibility and higher thresholds for domestic enterprises seeking to expand across European markets.
https://mfinante.gov.ro/static/10/Mfp/transparenta/proiectOUG_L227_20082025.pdf