Two different VAT rates applied to the same real estate transaction

The Senate voted on Monday October 11, 2021, for the first time for the Romanian tax legislation, to introduce a system with two different VAT rates for a single real estate transaction. Thus, if the price of the purchased home exceeds 450,000 lei, the reduced rate of 5% VAT will be applied up to this threshold, and the standard rate of 19% VAT will be applied on what exceeds 450,000 lei.