VAT rate increases to 9% (from 5%) for hotel accommodation, restaurant and catering services as of Jan 1, 2023

Amendments to the Romanian Fiscal Code from 2023

On 15 July 2022, the Romanian Fiscal Code was significantly amended. The changes were published in Ordinance no. 16/2022 in the Official Gazette no. 716 and will take effect on 1 January 2023. The most significant amendments to the Romanian Fiscal Code affect the withholding tax, corporate income tax, micro-enterprise tax and the VAT rules as well.

According to the amendments to the Romanian Fiscal Code, amongst the goods subject to 9% VAT rate, the list of food products / other similar goods, as well as of the products used in agriculture was modified.

The VAT rate increases to 9% (from 5%) for hotel accommodation, restaurant and catering services (with certain exceptions).

The delivery of homes with a VAT rate of 5% to individuals applies to homes with a usable area of up to 120 square metres, excluding household annexes, whose value, including the land on which they are built, does not exceed the amount of RON 600,000, excluding VAT. Any natural person can purchase, starting with 1 January 2023, individually or jointly with another natural person / other natural persons, a single home whose value does not exceed the amount of RON 600,000, excluding VAT, with a reduced rate of 5% (there are transitional measures for 2022).

Source WTS

---

---