How is VAT calculated under the margin scheme for a travel agency?
The special VAT regime for travel agencies is set out in art. 311 of the Romanian Fiscal Code. VAT is not computed on the full price, but on the agency's margin. Below you see the formula, a worked example and what the software does. Confirm the actual tax treatment with your accountant.
Short answer
- The margin is the selling price minus the cost of services bought from third parties.
- The margin is VAT-inclusive, so the VAT in the margin = margin × 21/121 at the 21% standard rate (in force since 1 August 2025).
- A negative margin is not offset against the positive margin of another booking.
- Under the margin scheme the invoice mentions the regime and does not show VAT separately; check the wording with your accountant.
- The software calculates the figures but does not decide the tax treatment: confirm it with your accountant.
How the calculation works
The special regime is set out in art. 311 of the Fiscal Code. The base is the margin on each booking, not total turnover.
Selling and cost prices are taken VAT-inclusive. That is why VAT is extracted from the margin with the fraction 21/121, not with 21%.
Your accountant decides whether the regime applies to you and to which sales. This is only a description of the calculation.
In the software, the margin calculation uses a single rate per booking: that of the line with the highest sales value.
Worked example
Example (illustrative figures): you sell a stay for EUR 1,210 and the costs bought from suppliers are EUR 726.
If another booking has a negative margin, for example sale 900 and cost 1,000, that booking's VAT is 0. The loss of 100 does not reduce the 84 above.
Example: VAT on margin
| Item | Calculation | Amount (EUR) |
|---|---|---|
| Selling price | — | 1,210 |
| Supplier cost | — | 726 |
| Margin (VAT incl.) | 1,210 − 726 | 484 |
| VAT in the margin | 484 × 21/121 | 84 |
| Margin excl. VAT | 484 − 84 | 400 |
Common mistakes
- Applying 21% directly to the margin instead of 21/121 of the VAT-inclusive margin.
- Offsetting a loss-making booking against a profitable one.
- Forgetting the regime mention on the invoice or showing VAT separately.
- Issuing the invoice without reviewing it with your accountant.
How 4AgencyTravel helps
- Keeps cost, selling price and supplier on each line, so your margin is visible.
- Calculates margin-scheme VAT or normal VAT per booking and shows the regime mention in the calculation; the default regime is set in the agency settings.
- On confirmation it creates a draft invoice in 4invoices and a storno on cancellation; nothing is issued automatically. The draft does not model the margin scheme, so you correct it before issuing.
- It does not decide the tax treatment: you and your accountant review every draft before issuing.