Starting 1 August 2025, Romania will unify the 5% and 9% VAT rates into a single 11% rate and raise the standard VAT rate from 19% to 21%.
Effective from tomorrow, 1 August 2025, Romania’s reduced VAT rates of 5% and 9% have been unified and increased to 11%, and the standard VAT has been increased from 19% to 21%. The law (Law No. 141) amends the VAT provisions of the Fiscal Code (Law 227/2015) and was published in the Official Gazette No. 699 on 25 July 2025.
Standard VAT rate
The standard VAT rate will increase from 19% to 21%, affecting supplies previously under the abolished 9% reduced rate. These include veterinary medicines, seeds, plants, food preparation ingredients, bee food, regulated food supplements, traditional cakes and biscuits, affordable housing (up to 120 sqm and RON 600,000), high-efficiency heating systems and solar panels (including repairs/extensions), and entry to fairgrounds, amusement parks, exhibitions, cinemas, and specific cultural events.
Reduced VAT rate
A new reduced VAT rate of 11% will replace the current 5% and 9% rates, affecting various goods and services. These include medicines, most food and beverages, water and sewerage services, agricultural supplies (e.g., fertilisers, seeds), and related services. The 11% rate will also apply to retirement homes, foster homes, rehabilitation centres for disabled children, hotel accommodations, campgrounds, and restaurant/catering services, excluding alcoholic and certain non-alcoholic beverages. These new VAT rates will go into effect on 1 August 2025, with transitional measures for the 9% VAT rate on certain dwellings.
Earlier, Romania’s parliament passed the Law on certain fiscal-budget measures on 14 July 2025 about VAT, bank turnover tax, and dividend tax.
