Fewer companies required to pay VAT: VAT registration threshold raised to 1.7 million lei
Fewer companies will be required to register as VAT payers after Parliament approved today the increase of the VAT registration threshold to 1.7 million lei. The draft law was adopted in the second reading and will enter into force on March 1, 2026.
The legislative initiative belongs to a group of MPs from the parliamentary faction “Our Party,” who claim that the amendment is intended to adjust the threshold to current economic realities and reduce the administrative burden on entrepreneurs.
“The initiative aims to simplify tax obligations for active taxpayers, improve the competitiveness of microenterprises, and increase the level of voluntary compliance,” the authors of the bill argued.
In the initial version, the MPs proposed raising the threshold to 3.2 million lei. Subsequently, however, the Committee on Economy, Budget and Finance supported the Government’s proposal to set the threshold at 1.7 million lei. Until now, the VAT registration threshold was 1.2 million lei. The legislative changes will enter into force starting March 1, 2026.
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