Compliance Update – Changes in VAT rates

Update: Compliance Alert - Changes in VAT rates
Date: 2023-01-24

Since 1 January 2023, Romania has introduced changes in the value-added tax rates.

Government Ordinance No. 16 of 15 July 2022 has extensively amended the Fiscal Code of 2015 and, simultaneously, has raised the VAT tax rates from the reduced amount to the standard amount.

The changes are as follows:

  • Select and uniquely classified (NC 2202 10 00 and 2202 99) non-alcoholic beverages will no longer be subject to the 9% reduced rate and will be subject to the 19% standard rate;
  • Hospitality and accommodation businesses, as well as restaurants and catering businesses, will now be subject to the 9% reduced rate, raised from the 5% reduced rate;
  • For housing supplies, the threshold for applying for a 5% reduced rate is 600 000 RON (ca. EUR 122 000), down from 700 000 RON (ca. EUR 142 000);
    • The above stipulation encompasses immovable property of up to 120 square meters;
  • For firewood supplies, the 5% reduced VAT rate shall remain until 31 December 2029.

Read the full government publication here.

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