Romania introduces changes in VAT rates from January 1st, 2023.

The most important changes to the Fiscal Code bring various novelties including amendments to The VAT Law by:
a) increasing the VAT rate for certain non-alcoholic beverages from 9% to 19%;
b) increasing the VAT rate for restaurant and catering services and hotel accommodation from the previous 5% to 9%;
c) decreasing the maximum value threshold for providing individuals with housing under the social policy from RON 700,000 to RON 600,000 and restricting the applicability of the reduced 5% VAT rate for the acquisition of a single dwelling by any individual.
Starting January 1st, 2023, for the delivery of non-alcoholic beverages (with added sugar, thus containing added sugar or other sweeteners or flavorings), the standard VAT rate of 19% will be applied while these products are being removed from the category of goods on which the VAT reduced rate of 9% that is currently used for such products.
The VAT rate applied on the restaurant and catering services, respectively for accommodation in the hotel sector, as well as sectors with a similar function, including the rental of land arranged for camping, is increased as well and in particular from 5% to 9% also from the start of 2023.
The VAT reduced rate of 5% will be applied for the delivery of buildings having a value that does not exceed 600,000 Romanian Lei (RON), excluding VAT (at this moment, the threshold is 700,000 RON, excluding VAT but is going lower to 600,000 RON), the other conditions remaining unchanged. Transitory measures have been introduced for sale-purchase agreements concluded before January 1st, 2023.