VAT group in Romania: conditions, procedure and what a single VAT return changes
Updated: 5 days ago
By Dr. Maria Piroi
The short answer
Romanian companies more than 50% owned by the same shareholders can opt to form a single VAT group for at least two years. Each member prepares its own VAT return, but only the representative pays or claims a refund, on a consolidated return. Every member is jointly and severally liable for all members' VAT.
The diagram and the steps below are a working English translation of the Romanian legal texts cited next to each element. The Romanian text prevails.
The process, step by step
Do the companies qualify? At least two taxable persons established in Romania, more than 50% of whose capital is held, directly or indirectly, by the same shareholders (Fiscal Code, art. 269 para. 9; Methodological Norms, point 5 paras. 1, 3 and 5). Each can belong to only one VAT group, all apply the same VAT period, and the option covers at least two years (point 5 para. 1).
The members appoint a representative and file a request signed by the legal representatives of all members, with each member's name, address, activity and VAT code, the proof of the common ownership and the name of the representative (point 5 para. 6). The ownership is proved with the trade register certificate or other supporting documents (point 5 para. 5).
The competent tax office decides and communicates the decision to the representative within 60 days of receiving the complete documentation (point 5 para. 7).
The group starts on the first day of the month after the decision is communicated, for members with a monthly VAT period, or on the first day of the next VAT period otherwise (point 5 para. 8).
Each period, each member prepares its VAT return and sends it to the representative, without paying or claiming a refund itself (point 5 para. 13 letter a).
The representative files all members' returns and a consolidated VAT return, then pays the VAT or claims the refund resulting from it (point 5 para. 13 letter b).
Changes: joining, leaving, a new representative or ending the option are notified at least 30 days before; losing the conditions is notified within 15 days (point 5 para. 9). For joining, leaving or a new representative, the tax office decides within 30 days; when the option ends or the conditions are lost, it cancels the group treatment. For monthly filers, the effect starts on the first day of the next month (point 5 paras. 10 and 11).
Options compared: advantages, disadvantages, risks
Option | Advantages | Disadvantages | Risks |
Separate VAT returns | Each company keeps its own VAT period and can apply VAT cash accounting where it qualifies (Fiscal Code, art. 282 para. 4 letter a excludes only group members) | No offset between companies: each one pays its own VAT or claims its own refund (the consolidated return exists only within a group, Methodological Norms, point 5 para. 13) | No group-specific liability; the general joint liability between controlled companies still applies in the cases of Fiscal Procedure Code, art. 25 para. 3 letter a |
VAT group | The consolidated return offsets one member's negative VAT against another member's VAT payable each period (point 5 para. 13 letter b) | At least two years (point 5 para. 1 letter b); the same VAT period for all members (point 5 para. 1 letter c); no VAT cash accounting (art. 282 para. 4 letter a); supplies between members stay taxable (point 5 para. 15) | Joint and several liability for all members' VAT (point 5 para. 14 letter c); inspection of each member, and a tax inspection can be suspended for checks at other members (point 5 para. 14 letter b; Fiscal Procedure Code, art. 127 para. 1 letter h); cancellation when the conditions are no longer met (point 5 para. 12) |
Key takeaways
The test is ownership of more than 50% of each company's capital by the same shareholders, directly or indirectly (Methodological Norms to the Fiscal Code, point 5 para. 5).
The option binds the group for at least two years and all members must use the same VAT period (point 5 paras. 1 and 2).
The consolidated return lets a VAT credit in one company offset VAT payable in another every month, instead of a refund claim (point 5 para. 13).
Every member is jointly and severally liable for any VAT due by any member for the time it belongs to the group (point 5 para. 14 letter c).
Supplies between members stay subject to VAT under the normal rules (point 5 para. 15), and members cannot use the VAT cash accounting system (Fiscal Code, art. 282 para. 4 letter a).
Who can form a VAT group?
The Fiscal Code allows a group of taxable persons established in Romania that are legally independent but closely bound by financial, economic and organisational links to be treated as a single VAT group, under the conditions of the Methodological Norms (art. 269 para. 9). The Norms set the conditions (point 5):
Condition | Reference |
At least two taxable persons established in Romania | Methodological Norms, point 5 paras. 1 and 3 |
More than 50% of each member's capital held, directly or indirectly, by the same shareholders | point 5 para. 5 |
A taxable person belongs to only one VAT group | point 5 para. 1 letter a |
The option covers at least two years, at group level | point 5 para. 1 letter b and para. 2 |
All members apply the same VAT period | point 5 para. 1 letter c |
How does the procedure work?
The request goes to the tax office designated to administer the group (Methodological Norms, point 5 paras. 4 and 6; Fiscal Procedure Code, art. 30 para. 5). It is signed by the legal representatives of all members and states each member's name, address, activity and VAT code, the proof of the common ownership and the member appointed as representative (point 5 para. 6).
The tax office approves or refuses the group within 60 days of receiving the complete documentation and communicates its decision to the representative (point 5 para. 7). The group applies from the first day of the month after the decision is communicated, for monthly filers, or from the first day of the next VAT period for the others (point 5 para. 8).
What changes in the monthly VAT return?
From the start of the group, each member other than the representative reports all its transactions in its own VAT return, sends that return to the representative and neither pays VAT nor claims a refund (Methodological Norms, point 5 para. 13 letter a). The representative:
carries into the first consolidated return the VAT payable not yet paid and the negative VAT not yet claimed from the members' previous returns;
files its own VAT return;
files a consolidated VAT return combining all members' returns;
files all members' returns with the tax office;
pays the VAT or claims the refund shown by the consolidated return (point 5 para. 13 letter b).
Each member still files its own recapitulative statement under art. 325 of the Fiscal Code (point 5 para. 14 letter a).
Example. In one month, company A has VAT payable of RON 300,000 and company B, which is investing, has VAT to recover of RON 200,000.
| Without a group | With a VAT group |
A | pays RON 300,000 | reports to the representative |
B | claims a refund of RON 200,000 | reports to the representative |
Paid by the group | RON 300,000, with RON 200,000 waiting for the refund | RON 100,000, paid by the representative |
Where the consolidated return shows negative VAT and a refund is claimed, the amount is first offset against the tax debts of the representative and then of the other members (Fiscal Procedure Code, art. 167 para. 9). The rules on whether a refund is paid before or after a tax inspection apply to the representative and to each member (art. 169 para. 6).
For how ANAF analyses a refund claim, see VAT refund risk analysis in Romania.
Received an ANAF letter on VAT risk? See what to check and how to correct before an inspection.
What are the risks?
Joint liability. Each member is jointly and severally liable for any VAT due by itself or by any other member for the time it belongs to the group (Methodological Norms, point 5 para. 14 letter c). A tax inspection that corrects one member's VAT therefore concerns all members.
Inspection of all members. Each member is subject to inspection by the competent tax office (point 5 para. 14 letter b), and a tax inspection can be suspended to carry out checks at the other members of the group (Fiscal Procedure Code, art. 127 para. 1 letter h).
Supplies between members stay taxable. Each member remains a separate taxable person for its supplies, whether to third parties or to other members (point 5 para. 15).
No VAT cash accounting. Members of a VAT group cannot apply the VAT cash accounting system (Fiscal Code, art. 282 para. 4 letter a). For who can opt for it outside a group, see TVA la încasare vs TVA la facturare.
Same VAT period. A member with a quarterly period may have to move to the group's period (point 5 para. 1 letter c). For the test that sets a monthly or a quarterly period, see monthly vs quarterly VAT.
Leaving. A member that leaves starts its next VAT return only with transactions after leaving, without carrying over the balance from the return it sent for consolidation (point 5 para. 14 letter d).
Cancellation. The tax office can cancel the group, or a company's membership, when the conditions are no longer met (point 5 para. 12).
Outside a VAT group, companies under common control are not jointly liable for each other's VAT as group members. The Fiscal Procedure Code still makes a company jointly liable with a debtor it controls, is controlled by or shares control with, where that debtor is declared insolvable under the Fiscal Procedure Code or is in insolvency, in the cases it lists, for example where it acquired assets from the debtor worth at least half of its own assets (Fiscal Procedure Code, art. 25 para. 3 letter a).
How does it compare with the corporate income tax group?
The two groups are separate options with separate tests. The VAT group needs common ownership of more than 50% and lasts at least two years; the corporate income tax group needs a holding of at least 75%, kept for one year before it starts, and lasts five years, with a recalculation of the tax if a member leaves early. See Corporate income tax group in Romania.
Who is affected?
Groups of Romanian companies under common ownership where one company regularly has VAT to recover (investment, exports, zero-rated supplies) while another regularly pays VAT. It also concerns foreign groups with several Romanian subsidiaries owned by the same parent.
What to do next
Check the ownership chain of each company and keep the trade register certificates.
Map each company's VAT position over the next 24 months, including expected refunds.
Check which companies use VAT cash accounting or a quarterly VAT period, since both change.
Assess the joint liability: open tax inspections, disputes and VAT debts of each company.
Agree in writing how the companies settle the VAT offset between them, appoint the representative and file the request.
Frequently asked questions
What ownership is needed for a VAT group in Romania?
More than 50% of each member's capital must be held, directly or indirectly, by the same shareholders (Methodological Norms to the Fiscal Code, point 5 para. 5).
How long must a VAT group last?
At least two years. The minimum period applies to the group, not to each member (Methodological Norms, point 5 para. 1 letter b and para. 2).
When does the VAT group start?
On the first day of the month after ANAF communicates its approval to the representative, for monthly filers (Methodological Norms, point 5 para. 8).
Do members still file their own VAT returns?
Yes. Each member prepares its own VAT return and sends it to the representative, who files all returns and a consolidated return (Methodological Norms, point 5 para. 13).
Are supplies between group members exempt from VAT?
No. Each member remains a separate taxable person and its supplies to other members are taxed under the normal rules (Methodological Norms, point 5 para. 15).
Can a VAT group member use VAT cash accounting?
No. Members of a VAT group are excluded from the VAT cash accounting system (Fiscal Code, art. 282 para. 4 letter a).
Who is liable for the group's VAT?
Each member, jointly and severally, for any VAT due by any member for the time it belongs to the group (Methodological Norms, point 5 para. 14 letter c).
Sources
Fiscal Code (Law no. 227/2015), art. 269 para. 9, art. 282 para. 4 letter a, art. 325, consolidated form on legislatie.just.ro
Methodological Norms to the Fiscal Code (Government Decision no. 1/2016), Title VII, point 5, consolidated form on legislatie.just.ro
Fiscal Procedure Code (Law no. 207/2015), art. 25 para. 3, art. 30 para. 5, art. 127 para. 1 letter h, art. 167 para. 9, art. 169 para. 6, consolidated form on legislatie.just.ro
Last updated: 1 November 2026. This article is for information only and does not replace an analysis of your specific situation. Drafted with AI assistance; references were verified against the primary sources.
Questions about a VAT group? Primary contact: Bogdan Năstase · Managing Partner, International Lead
