Jul
VAT rate changes in Romania
The Romanian Government has stated their intention to increase the VAT rates in Romania as of 1 August 2025.
The draft amendments published today (3 July 2025) envisage:
- increasing the standard rate from 19% to 21%
- scrapping the 5% and moving most of the goods and services to an 11% rate while a small number will be standard rated.
- Moving most goods and services currently subject to a 9% rate to the 11% rate with some very limited exceptions (e.g. new housing for which an advance payment has been made by 1 August 2025 will remain at a 9% rate if delivered by 1 August 2026).
The amendments are part of a broader package of tax increases which includes other indirect taxes such as duties on alcohol, tobacco and fuel but also direct taxes (tax on dividends, social security etc.).
The draft law is currently going through a debate process and may be further amended before being officially published and enacted. The consultation process formally takes 30 days, however, it is likely the process will be shortened considerably if these amendments are expected to be applied from 1 August 2025.
In light of the tight deadline, both resident and foreign tax payers that are VAT registered in this country or plan on registering in the near future should prepare to amend their tax and accounting software to account for the new rates.
If you believe these amendments may impact your business and have questions feel free to reach out to us.