Coffee and tea-based drinks should be subject to 9% VAT

• Court Ruling Against ANAF: The Brașov Court of Appeal ruled that the retroactive application of a 19% VAT rate on coffee and tea served in HoReCa establishments is illegal, confirming a lower court’s decision.
• Clarification of VAT Rates: The ruling resolves the longstanding confusion regarding whether the VAT on hot beverages should be 9% or 19%. The court upheld that coffee and tea-based drinks should be subject to the lower rate.
• Impact on HoReCa Sector: This decision is significant for the HoReCa industry, as it overturns ANAF’s previous decisions on VAT collection, potentially alleviating financial burdens on businesses within this sector.

Source Profit.ro

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