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VAT on Reselling Second-Hand Cars from the EU in Romania (2025 Complete Guide: Margin Scheme, Scenarios, Calculations, Invoicing, Returns)

The article explains when the margin scheme can be used, how to document acquisitions from EU suppliers and what happens if conditions are not met. It includes worked examples, invoicing tips, typical ANAF challenges and how to correct past errors through amended returns or voluntary disclosure.

Introduction

Buying used cars across the EU and reselling them in Romania can follow two very different VAT routes with major pricing and compliance consequences: the normal VAT regime (tax on the full selling price) and the special margin scheme (tax only on your profit). Choosing correctly at the moment of purchase, documenting the transaction, and invoicing with the required wording will determine your effective VAT burden, your ability to compete on price, and your exposure at audit. This guide organises the core legal rules, typical scenarios, numerical examples, and the most common pitfalls for Romanian car dealers in 2025. The legal foundation is EU VAT Directive 2006/112/EC (margin scheme for second-hand goods) and the Romanian Fiscal Code, Article 312, with ANAF guidance on practical reporting (D300/D394/D390). (Taxation and Customs Union)

1) Legal framework at a glance

  • EU law (Directive 2006/112/EC) sets a special margin scheme for second-hand goods (Articles 311–325). Under this scheme, VAT applies to the dealer’s profit margin; VAT must not be shown separately on the invoice. (Taxation and Customs Union)
  • Romanian law (Fiscal Code, Article 312) transposes the scheme, defining when dealers may apply it, how to compute the taxable base, and the obligation to keep separate records for margin-scheme sales vs. normal regime. (Noul Cod Fiscal)
  • ANAF materials clarify practice for used vehicles: when an intra-EU purchase is not an AIC in Romania (because the EU seller applied the margin scheme), required invoice wording, and how such purchases/sales appear in D300/D394/D390. (ANAF)

2) “New” vs “used”: the decisive classification

For VAT, a car may be treated as “new” even if previously registered. EU guidance treats a car as new if no more than 6 months have elapsed since first registration or it has travelled no more than 6,000 km; otherwise it is used. “New means of transport” have their own intra-EU rules and do not fall under the margin scheme. Always document mileage and first registration to evidence the status. (European Union)

3) Normal regime vs. margin scheme — the core idea

  • Normal regime: VAT is charged on the entire selling price. If you bought the car via an intra-EU supply without the margin scheme (i.e., you received an intra-Community supply from the seller), you normally account for an intra-Community acquisition (AIC) in Romania (reverse charge), with corresponding input VAT deduction (if allowed) and then charge Romanian VAT on resale. (Taxation and Customs Union)
  • Margin scheme: VAT is charged only on your margin (profit). The invoice must not show VAT separately; it must carry a specific mention that the margin scheme for second-hand goods was applied. (Taxation and Customs Union)

4) When you may apply the margin scheme (eligibility)

A Romanian dealer may sell under the margin scheme only if the car was acquired in the EU from one of these categories (mirroring Article 314 of the Directive and Fiscal Code Article 312):

  1. A non-taxable person (e.g., a private individual).
  2. A taxable person whose supply to you was exempt (under the relevant rules for second-hand goods).
  3. A small enterprise under a special exemption regime in its Member State.
  4. Another taxable dealer who applied the margin scheme on their sale. (Taxation and Customs Union)

Practical consequences:

  • If your purchase invoice from the EU seller carries a margin-scheme reference (e.g., “Margin scheme – second-hand goods”), that purchase is not an AIC in Romania (no D390 for the purchase), and you may resell under the margin scheme in Romania. (ANAF)
  • If you buy from a private individual in another Member State, the purchase is not an AIC; you can resell under the margin scheme, subject to the other conditions. (Noul Cod Fiscal)

5) When you cannot use the margin scheme

  • If you purchase with deductible VAT (e.g., the EU supplier did not apply the margin scheme and treated it as a VAT-free intra-EU supply to a taxpayer), you will have an AIC in Romania (reverse charge). Resale must then be in the normal regime (no switch to margin scheme on resale). (ANAF)
  • If the vehicle is a new means of transport (≤6 months or ≤6,000 km), specific “new means” rules apply, outside the margin scheme. (European Union)
  • If you import vehicles from outside the EU, the margin scheme is generally not available for cars (different treatment than for art/antiques); import VAT/normal regime applies absent a narrow special rule. Verify Article 312 and national norms before assuming eligibility. (Noul Cod Fiscal)

6) How VAT is computed under the margin scheme

Definitions aligned with the Directive and Romanian law:

  • Margin = selling price − purchase price (consideration paid to your supplier).
  • Tax base = margin without VAT.
  • VAT due (19% standard rate) = margin × 19/119 (if the margin is positive).
  • No VAT is shown separately on the invoice. (Taxation and Customs Union)

Example 1 — positive margin

  • Purchase (Germany, seller used margin scheme): 30,000 lei.
  • Sale in Romania: 35,700 lei.
  • Margin = 5,700; VAT included in margin = 5,700 × 19/119 = 909 lei; Base = 4,791 lei.
  • Invoice: no separate VAT line; include the mandated margin-scheme wording. (service.betterregulation.com)

Example 2 — negative margin

  • Purchase 30,000; sale 29,000 ⇒ margin = −1,000 ⇒ no VAT is due (there is no “negative VAT”). (Taxation and Customs Union)

Repairs, transport, auction fees
These do not reduce the “purchase price” for margin computation (which is strictly what you paid the supplier for the car). However, VAT on separately invoiced services (transport/repairs) can be deductible if used for taxable operations; ANAF guidance confirms deductibility in practice. Keep documentation tidy. (ANAF)

7) Three canonical scenarios (with VAT outcome)

Scenario A — Buying from a private individual (France) → resale in Romania

  • At purchase: no AIC in Romania.
  • At resale: margin scheme may apply (with proper records and invoice wording). No D390 for the purchase. (Noul Cod Fiscal)

Scenario B — Buying from a German dealer who applies the margin scheme

  • The supplier’s invoice contains a margin-scheme mention.
  • No AIC arises in Romania; no D390 for the purchase.
  • Resale in Romania: margin scheme. (ANAF)

Scenario C — Buying from an Italian dealer without the margin scheme (intra-EU supply)

  • In Romania, you book an AIC (reverse charge; report in D390 and D300).
  • Resale must be in the normal regime (full VAT on the selling price). (ANAF)

8) Invoicing correctly under the margin scheme

Mandatory elements:

  • Do not show VAT separately.
  • Add a clear reference to the margin scheme (e.g., “Margin scheme – second-hand goods” / Romanian equivalent), or a reference to the relevant provisions. ANAF emphasises that simply noting “second-hand” is not enough; the margin-scheme wording must be present. (ANAF)

Keep separate accounting records for margin-scheme vs. normal-regime operations, as required by Article 312 and the implementing norms. (Noul Cod Fiscal)

9) Returns and statements (D300, D394, D390)

  • Purchase under the supplier’s margin scheme (EU): not an AIC in Romania → no D390 for the purchase. Resale under the margin scheme is taxable and goes into D300 under the appropriate line for 19% operations; transactions also appear in D394 as domestic supplies, even though the invoice has no separate VAT. ANAF guides reflect this treatment. (ANAF)
  • Purchase without the supplier’s margin scheme (intra-EU supply): book AIC in Romania (reverse charge): D390 + D300; resale is normal regime, not the margin scheme. (ANAF)

10) Documentation that protects you at audit

  1. Supplier invoice: look for the explicit margin-scheme mention; absent this, the default is normal regime. Keep any correspondence confirming the seller’s regime. (ANAF)
  2. VIES check: verify the supplier’s VAT ID when the sale is not under the margin scheme; keep a screenshot in your file. (Taxation and Customs Union)
  3. Transport evidence (CMR, collection notes), consistent with dates, for correct AIC/non-AIC analysis. (ANAF)
  4. Vehicle status: first registration date and mileage to show the car is not a “new means of transport”. (European Union)
  5. Separate ledgers for margin vs. normal regime, and a margin worksheet per vehicle (purchase price, selling price, VAT = margin × 19/119). (Sintact)

11) FAQs (practitioner answers)

Can I “switch” a car from normal regime to margin scheme at resale?
No. If you purchased under normal regime (e.g., you had an AIC), resale must be normal regime. The margin scheme requires eligibility from the acquisition stage. (Noul Cod Fiscal)

How do I compute VAT in the margin scheme?
Use VAT = margin × 19/119; if the margin is negative, no VAT is due. Do not disclose VAT separately on the invoice; include the scheme wording. (Taxation and Customs Union)

Is VAT on pre-sale repairs deductible if I sell under the margin scheme?
Generally yes for separately invoiced services used for taxable supplies; ANAF materials acknowledge deductibility in practice. Keep clean documentation. (ANAF)

What if the EU seller failed to indicate the margin scheme on their invoice?
Risk of reclassification as an AIC in Romania, with VAT (reverse charge), interest/penalties, and no margin scheme at resale. Seek a corrected invoice or written confirmation from the seller. (ANAF)

Can I use a “global margin” across a period?
The Directive allows Member States to provide a global scheme, but application depends on national rules. In Romania, dealers typically compute per vehicle; check the latest norms before adopting a period-based approach. (Taxation and Customs Union)

12) Compliance checklist (used-car EU trade)

  • Before buying: identify the scenario (private seller; EU dealer with margin scheme; EU dealer without margin scheme). Price in the VAT effect. (ANAF)
  • On receipt: collect full documents (invoice with margin wording if applicable, CMR, vehicle papers). (ANAF)
  • New vs. used: check 6 months / 6,000 km threshold. (European Union)
  • Accounting: keep separate records (margin vs. normal). (Sintact)
  • Invoicing: no separate VAT under the margin scheme; mandatory wording on the invoice. (service.betterregulation.com)
  • Returns:
    • Margin-scheme purchase → no D390; resale goes in D300 (and D394).
    • Non-margin purchase → D390 + D300 for AIC; resale under normal regime. (ANAF)

13) Extended case studies

Case 1 — Romanian dealer buys 10 cars from private individuals in the Netherlands; repairs in Romania; resale in Romania

  • Purchases: not AIC; no D390.
  • Services: transport/repairs VAT may be deductible (used for taxable outputs).
  • Sales: margin scheme per car; keep a margin worksheet and separate records. (ANAF)

Case 2 — Mixed fleet: three cars from a German dealer using the margin scheme + two from an Italian dealer without the scheme

  • Three “margin” cars: no AIC; resale under margin scheme.
  • Two “non-margin” cars: AIC in Romania (D390 + D300 reverse charge); resale under normal regime. Maintain two distinct ledgers. (ANAF)

Case 3 — Apparently used vehicle but “new” for VAT (4,500 km; 4 months)

  • Treated as new means of transport; margin scheme not available; follow the specific “new means” rules for intra-EU supplies/acquisitions. (European Union)

14) What ANAF auditors typically look for

  • Invoice wording confirming the margin scheme when relied upon.
  • Clear separation of margin-scheme vs. normal-regime transactions.
  • Evidence the supplier actually applied the margin scheme (invoice +, where relevant, confirmation that the seller is a dealer applying the scheme).
  • Correct D390/D300/D394 treatment consistent with how the purchase was treated.
  • “New vs. used” classification backed by documents (odometer/first registration).
  • Consistency between commercial margins and reported tax margin.
    These focus points flow from Article 312, the implementing norms, and ANAF’s explanatory materials. (Noul Cod Fiscal)

15) Side topics that often matter

  • Deduction limits for general motor-vehicle expenses (e.g., mixed use) are separate from the margin-scheme logic; ensure the accounting policy reflects both sets of rules correctly. (Noul Cod Fiscal)
  • Cross-border registration/“new means” issues for exceptional cases (e.g., very low mileage many months later) should be cross-checked against up-to-date EU and national guidance. (European Union)

16) Bottom line

In the EU used-car trade, your VAT outcome is set at purchase. If the supplier applied the margin scheme (or you buy from a private seller), you can usually resell in Romania under the margin scheme—VAT only on your profit and no separate VAT on the invoice. If the supplier made a normal intra-EU supply to you, you book an AIC in Romania and resell under the normal regime (full VAT on price). Get the classification right (new vs. used), put the invoice wording in place, maintain separate ledgers, compute VAT = margin × 19/119, and report accurately (D300/D394/D390). Doing so reduces reclassification risk and keeps your pricing predictable in a highly competitive market. (Taxation and Customs Union)

Primary sources for verification

  • EU VAT Directive 2006/112/EC (margin scheme Articles 311–325; invoice rule not to show VAT separately). (Taxation and Customs Union)
  • Romanian Fiscal Code – Article 312 and implementing norms (definitions, records, scope). (Noul Cod Fiscal)
  • ANAF guidance on second-hand cars and margin scheme (invoice wording, non-AIC treatment, returns). (ANAF)
  • EU guidance on “new vs. used” (6 months / 6,000 km). (European Union)
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