How to work out Romanian Vehicle Emissions Tax

sanderoThe Romanian Tax Authority, Agenţia Naţională de Administrare Fiscală (ANAF) or the National Agency for Fiscal Administration, which is based in Bucharest is responsible for setting the Vehicle Emissions Tax in Romania. A member of the European Union since 1st January 2007, Romania is one of the current total of 20 states of the EU that impose a CO2 emissions tax on car users. What they call a special pollution tax in Romania (or effectively a registration tax) is based on CO2 emissions as well as cylinder capacity and compliance with European emission standards. All new cars in Romania that were registered after December 2008 are exempted from this tax if their engine capacity is below 2000ccs and they meet Euro 4 and 5 standards or are hybrid vehicles.

The tax, which is now called an environmental stamp tax is low for old cars as well as new ones that have low CO2 emissions, but if you are a Romanian citizen with a car in the middle, the tax is likely to hit you quite hard. Another factor that is taken into account is the actual CO2 emission, which can lead to a higher tax for the same model and the same age of car. Ironically, older cars with similar emissions to more recent models will attract a significantly lower level of tax.

In order to help people to anticipate what their tax is likely to be, the ANAF has published an online calculator. The calculator is featured on their main website and requires that users input their name and identity card number before being able to work out their likely tax bill. Thereafter, it’s a case of marking the category of vehicle for which you’d like the calculation to be made. The online tax calculator then requires you to input the ccs of the car, the European norm of the vehicle, its age and its emissions as well as the type of vehicle prior to being able to estimate the amount of tax you are due to pay.

In the UK there is a similar type of CO2 emissions calculator and payment of taxes are dealt with through annual Road Fund Licenses and through charging a scale of benefits in kind on individuals in respect of their business-provided or funded vehicles for which taxes are reported on forms P11D. Where UK tax advice is needed then a UK accountant, such as Crick Heitman, accountants Staines, should be contacted.

Payment of tax in Romania is demonstrated by the presence of a vignette on the vehicle in question. Although vignette is a French term, it is a word that has been adopted in many European countries to describe what we in the UK call a tax disc. Vignettes are designed in such a way that removing them more often than not results in them being destroyed. This is done deliberately so they can’t be transferred from vehicle to vehicle. In Romania, it is typical for traffic to be monitored in the same way as in any other European country, and checking that vignettes are correct and up to date is a standard part of the verification process. Any driver found to have an out of date vignette or not having one at all can expect a fairly hefty fine.