- VAT Rate Increases Proposed: Romania’s new government has introduced significant changes, including raising the standard VAT rate from 19% to 21% and consolidating the existing reduced rates of 5% and 9% into a single reduced rate of 11%.
- New Reduced Rate Applications: The new 11% rate will apply to various goods and services, including books, cultural admissions, firewood, thermal energy, food, medicines, fertilizers, water supply, and accommodation services.
- Implementation Timeline and Legislative Status: The new VAT rates will take effect on August 1, 2025. As of July 16, 2025, the draft law has been referred to the President for promulgation, pending resolution of potential constitutional issues.
Source: fintua.com
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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.
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