VAT rates hike announced as of 1 August 2025

Romania plans to increase VAT rates effective 1 August 2025.

• The standard VAT rate will increase from 19% to 21%.
• The reduced rate will increase from 9% to 11%.
• Supplies currently benefiting from the super-reduced 5% rate will be shifted to the 11% reduced rate.

As a result, the 11% reduced VAT rate will apply to a range of goods and services, including food products, medicines, public water and sewage services, books, restaurants, accommodation and others.

In addition, excise taxes on certain types of fuels, alcoholic beverages, and tobacco products will be raised starting on the same date.

The Romanian government is getting ready to release a draft Ordinance this week to amend the Fiscal Code, including these changes and others.

 

Key takeaway

Be prepared for the expected changes, which will come into effect quickly during the summer break, requiring fast action on your systems and compliance tasks.

Businesses should also assess the impact on cash flow and costs of these measures.

 

Reference

Conferința de presă susținută de prim-ministrul Ilie Bolojan