The Romanian government has recently proposed a range of fiscal measures, one of which is to increase the VAT rate of restaurant, catering and cultural services (theatre, cinema) from the reduced rate of 9% to the standard rate of 19%.

For now, it is proposed that hotels and food will remain at the reduced VAT rate of 9%. However, they have suggested that there will be increases in foods and drinks that have a high concentration of sugar.

The Government is also discussing the possibility to abolish the reduced VAT rate of 5%, leaving the standard VAT rate of 19% and the reduced VAT rate of 9%. This would mean an increase in the VAT rate from  5% to 9% percent for textbooks, transport and firewood.

If you have any questions on the impact of the above changes on your business, please contact us here