Non-VAT Payer Invoicing EU Clients? Thresholds and Fixing a Missing Art. 317 Code
Denis Bradu
Finanial Auditor
Taras moved to Bucharest last year from Chișinău. IT freelancer with 8 years of experience, he opened a micro SRL for serious contracts, pays 1% income tax (single rate from 2026), non-VAT payer. In June he receives his first European client: a SaaS company from Berlin offering a €3,200 per month consulting contract. His accountant emails him: "Taras, before you issue the first invoice, you need the special art. 317 VAT code. It is mandatory." Taras Googles it and finds contradictory information. One forum says it is required above a certain threshold. A blog says it applies from the first invoice regardless of amount. A third source says you do not need anything if you stay a non-VAT payer. He writes to us: "Can I invoice below a threshold and avoid all the paperwork?" Short answer: no, there is no threshold for B2B services to EU VAT-registered clients. The obligation to obtain the art. 317 code kicks in from the very first euro invoiced.
The general rule: no threshold for B2B intra-EU services
The Romanian Fiscal Code, art. 317(1)(b), is clear: if you provide intra-community services to a taxable person from another Member State (i.e. a company with a valid VAT number in VIES), you must obtain the special VAT code before providing the service.
There is no "tolerance threshold". There is no "first €5,000 do not count". The first €100 invoice to your Berlin client puts you under the obligation.
The reason is simple: for B2B intra-community services, the place of supply is at the recipient's location (general rule, art. 278(2) of the Fiscal Code). So the service is considered supplied in Germany, not in Romania. The German client must apply reverse charge and declare the transaction.
Key point: the art. 317 code does NOT make you a VAT payer
This is the number one confusion. The special VAT code obtained under art. 317 is not equivalent to registration for VAT purposes under art. 316.
What you have | Special art. 317 code | Normal art. 316 code |
|---|---|---|
VAT status | Remain non-VAT payer | Become VAT payer |
Collect VAT on domestic invoices | No | Yes (21%, 11% or other rates) |
Deduct VAT on purchases | No | Yes |
Invoice with VAT to Romanian clients | No | Yes |
File D300 (normal VAT return) | No | Yes monthly/quarterly |
File D301 | Yes, if intra-EU purchases | No (goes into D300) |
File D390 (VIES recapitulative) | Yes, monthly for months with operations | Yes, monthly |
Invoice with "reverse charge" to EU | Yes | Yes |
In other words, the art. 317 code is a separate "fiscal pocket": you remain a non-VAT payer on domestic activity (invoices to Romanian clients without VAT), but you can do intra-community transactions officially, with active VIES.
The 3 thresholds that matter for a non-VAT payer with EU clients
Threshold matrix
What you sell | To individuals (B2C) | To businesses (B2B) |
|---|---|---|
Goods | Distance sale: threshold €10,000 / 46,337 lei (cumulative across EU) | Treated as domestic supply with place in RO. Counts toward 395,000 lei threshold |
General services | Place in RO, counts toward 395,000 lei | Special art. 317 code mandatory, no threshold, from the first euro |
Electronic services (TBE) | €10,000 / 46,337 lei threshold combined with distance sales | Special art. 317 code, no threshold |
Threshold 1: 395,000 lei domestic (art. 310, increased by OG 22/2025)
Below 395,000 lei annual turnover (increased from 300,000 lei by OG 22/2025, effective September 1, 2025), you are exempt from normal VAT registration.
Important calculation rule: from 2025 onwards, operations with place of supply abroad have been removed from this threshold calculation, including B2B intra-community services. Taras's invoices to the Berlin SaaS do not consume this threshold.
What counts:
Domestic goods supplies to Romanian clients
B2C services provided in Romania
Distance sales below the €10,000 threshold
What does NOT count:
B2B services to EU businesses
Services to non-EU clients
Above 395,000 lei, you must switch to normal VAT payer under art. 316.
Threshold 2: €10,000 / 46,337 lei for distance sales and TBE services
Specific to intra-community B2C: distance sales of goods to individuals in other EU states, plus TBE services to EU individuals.
It is a cumulative threshold across the entire EU, not per country.
Below threshold: you invoice under Romanian regime (as non-VAT payer, no VAT).
Above threshold: taxation shifts to the country of consumption:
OSS (One Stop Shop): single quarterly return for the whole EU. To use OSS you need a valid art. 316 or art. 317 code beforehand.
Local registration in each EU country.
Practical: if you sell online courses, templates, plugins to individual customers in the EU and approach €10,000/year, take the art. 317 code preventively for OSS.
Threshold 3: €100,000 SME cross-border (art. 310¹, new via OG 22/2025)
The small enterprise exemption regime has been extended at European level:
Annual turnover at EU level does not exceed €100,000 (current and prior year).
Operations in the target Member State do not exceed the local exemption threshold.
Prior notification to ANAF is required. The tax authority issues an individual code with suffix "EX". Exceeding must be reported within 15 working days.
Common confusion: 34,000 lei for intra-community goods purchases
This is a DIFFERENT threshold, applicable only to purchases (not sales) of intra-community goods (not services).
Art. 268(4) of the Fiscal Code says that intra-community purchases of goods below €10,000 (~34,000 lei) per year are not considered taxable operations in Romania.
But:
Applies only to GOODS, not services.
Applies only to what you BUY, not what you sell.
Has nothing to do with the art. 317 obligation for services.
For Taras's case (who provides services), this threshold is completely irrelevant.
I invoiced without the art. 317 code. What now?
The good news: you do not owe VAT in Romania
On the service itself, VAT is not due. Place of supply is at the recipient (rule of art. 278(2)), so the operation is not taxable in Romania. VAT is self-assessed by the EU client through reverse charge.
You have a declarative and invoice-form non-compliance, but no financial hole.
What you did wrong
The code should have been obtained before the provision.
The invoice should have been issued with reverse charge mentions and special VAT code.
You could not file D390.
Realistic penalties
D390 non-filing: fine 1,000 to 5,000 lei; 500 to 1,500 lei for incorrect filing.
Important mitigation: only a warning, no fine, if filed on your own initiative within 15 days of the legal deadline (first offense).
For late art. 317 registration, there is no "you owe the VAT" penalty.
Remediation steps
File D700 for the art. 317 code (electronic, from SPV).
Wait for code issuance (1-5 business days).
Cancel the wrong invoice and reissue corrected with:
Your special VAT code (RO + 8 digits)
The EU client's VAT code (verified in VIES)
Mention "not taxable in Romania" or "reverse charge"
No VAT applied
File D390 for the affected month on your own initiative.
Communicate with the EU client that the corrected invoice has been issued.
Important nuance: the code does not cover retroactively
Registration under art. 317 is valid from the date of the request, not retroactively. Resolution through reissuance + voluntarily filed D390.
What not to do
Do not issue a new invoice without canceling/reversing the old one.
Do not ignore the situation thinking "it is a small invoice".
Do not invoice with Romanian VAT 21% to the EU client.
Do not confuse with B2C distance sales.
Practical recommendation for Taras
Verify in VIES that the client has a valid VAT code.
File D700 immediately, before the first invoice.
Configure your billing system with reverse charge mentions ready.
Set up recurring D390 monthly.
If you also purchase EU services (Google Ads, Stripe), D301 obligation arises.
When you transition to normal VAT payer art. 316
Below 395,000 lei domestic turnover, you remain non-VAT payer. Above, you switch to art. 316:
Invoice with VAT (21%, 11%, other rates) to Romanian clients
Deduct VAT on purchases
File D300 monthly/quarterly
The art. 317 code automatically converts to art. 316
Legislative sources
Fiscal Code, art. 278(2): place of supply for intra-community B2B services
Fiscal Code, art. 268(4): €10,000 threshold for intra-community goods purchases
Fiscal Code, art. 310: 395,000 lei threshold small enterprise
Fiscal Code, art. 310¹: SME cross-border regime €100,000
Fiscal Code, art. 317: special VAT code for intra-community operations
At Fintaxy we work daily with micro SRLs, PFAs and freelancers starting to invoice EU clients. We handle art. 317 registration, configure your billing system, file D390 monthly. If you are in Taras's situation, or you have already issued an invoice incorrectly and want to fix it, write to us at fintaxy.com.
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This article is for informational purposes only and does not constitute individual tax advice. Romanian VAT legislation updates frequently (OG 22/2025 changed thresholds effective September 1, 2025). For your specific situation, consult a licensed consultant fiscal or CECCAR-certified accountant.