- From August 1, 2025, Romania will implement significant changes to VAT rates
- Standard VAT rate will increase from 19 percent to 21 percent
- Reduced VAT rate will increase from 9 percent to 11 percent
- These changes will impact a wide range of services and goods
- Romania previously reduced tax burdens to boost business and attract foreign investors
- A flat 16 percent income tax rate was introduced in 2005
- Economic crisis halted the trend of reducing tax burdens
- Indirect taxes increased during the crisis while direct tax rates remained stable
- Corporate income tax rate decreased from 25 percent in 2000 to 16 percent in 2012
- VAT rates increased significantly due to the economic crisis
- Basic VAT rate was 19 percent in 2009, increased to 23 percent in 2010, and 24 percent in 2011
- Romania’s VAT rate became one of the highest in the EU
- A reduced 9 percent VAT rate applies to hotel services, books, newspapers, magazines, and medicines
- VAT is paid quarterly, with monthly payments for those with annual turnover over 100,000 euros
- VAT registration is required for annual turnover over 35,000 euros
Source: eurofiscalis.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
