All expenses (lease, fuel, insurance) are fully tax deductible and the related VAT provided that the car is 100% for the use of the business. The company must produce supporting documents to prove such use (transportation sheet that includes at least the minimum information requirements as provided by law e.g. type of vehicle used, purpose and place of displacement, kilometers done, own norm of fuel consumption per kilometer). If the company fails to prove the exclusive use for business purposes, the expenses and the related VAT are only 50% deductible, presuming that non business use is not significant. If the car is significantly used for private purposes by employees this is treated as an income received in kind and will included in the payroll. The regulations are provided by Law no. 227/2015 regarding the Fiscal Code, updated (art. 25, paragraph (3), letter l) – the expense deductibility, art. 298- the VAT, art. 76, paragraph (3) – taxable income paid in kind to employees). The fiscal depreciation (tax allowance) of cars (under 9 seats) is limited to 1,500 RON/month/vehicle.
Tax Alert Tax amnesty Law no. 177/2026 – applying procedure ANAF Order No. 1512/2026 approved the procedure for applying the tax amnesty provided by the Law No. 177/2026. It applies to taxpayers… Read more
Tax Alert Suspension of QR Code Penalties on Fiscal Receipts and Abolition of the Fee on Non-EU Parcels The main amendments introduced by Government Emergency Ordinance No. 43/2026, published in the Romanian Official Gazette No. 915 on 30 October 2026,… Read more
Tax Alert Fiscal Alert – QR Code Requirement for Fiscal Receipts As of November 1, 2026, the issuance of fiscal receipts containing a QR code will become mandatory. At present, there is an… Read more