Recent VAT changes

• Certain categories of non-alcoholic drinks will no longer will be subject to the reduced VAT rate.
• The supply of hotel accommodation, and restaurant and catering services will no longer be subject to the 5% VAT rate
• A new threshold of 600,000 RON has been introduced for the application of the 5% rate for the supply of housing.
• The application of the 5% VAT rate for supply of wood for use of firewood (in certain conditions) was extended to 31 December 2029.

Source: KPMG

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