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Romania plans to raise the standard VAT rate from 19% to 21% starting 1 August 2025, eliminating the 9% reduced rate and adjusting VAT for items like veterinary medicine, traditional foods, and green systems.
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A new reduced VAT rate of 11% will replace the current 5% and some 9% rates, covering essential goods and services like human medicine, food, water, irrigation, fertilizers, accommodations, and catering (excluding alcohol).
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The government also proposes increasing the bank turnover tax from 2% to 4% (July 2025–Dec 2026) and raising the dividend tax rate from 10% to 16%, effective 1 January 2026.
Source: Orbitax
