- Two VAT Rates System: Introduction of a two-tier VAT system, which would involve adjusting the standard VAT rate and potentially implementing a reduced rate for specific goods and services to stimulate economic activity.
- Increased Excise Duties: Alongside VAT reforms, proposals include increasing excise duties, which may indirectly affect the overall tax burden on goods and services, impacting their final pricing.
- Review of VAT on Property Transactions: Adjustments to the VAT treatment of real estate transactions, including potential changes to exemptions or reduced rates for specific types of property sales to enhance affordability and market activity.
- Alignment with EU Standards: Proposed changes aim to align Romania’s VAT rates and regulations with broader EU standards and directives, ensuring compliance and facilitating smoother trade within the EU.
- Monitoring and Evaluation of VAT Impact: Continuous evaluation of VAT rates’ impact on revenue generation and economic behavior, ensuring that any changes made are effectively contributing to fiscal targets without disproportionately affecting consumers.
Source Official Gazette
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