Romania Increases VAT Rates and Dividend Tax Under New Legislation Effective August 2025

• Romania’s President signed a law to increase VAT rates
• A two-rate VAT system will replace the current three-rate system
• From August 1, 2025, the main VAT rate will increase from 19 percent to 21 percent
• The reduced VAT rates of nine and five percent will merge into an 11 percent rate
• The tax on dividend income will rise from 10 percent to 16 percent starting January 1, 2026

Source: answerconnect.cch.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.