Starting January 1, 2024, Romania will implement some important changes in the value-added tax (VAT) rates and exemptions for certain goods and services, according to Law No. 296/2023. These changes will affect the retail sector, as they will modify the prices and the fiscal obligations of the sellers and buyers
Romania to increase VAT rates for various retail items and activities from January 2024
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Romania
Author: Kristina Dosen
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Fiscal subject related
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497
Content accuracy validation date:
11.12.2023
Content accuracy validation time:
08:12h
Content
Some of the main changes are:
- The VAT rate for foods with added sugar, whose total sugar content is at least 10g/100g product, will increase from 9% to 19%, except for cake and biscuits, which will remain at 9%.
- The VAT rate for the delivery of housing as part of social policy, including the land on which it is built, will increase from 5% to 9%, with some conditions and limitations.
- The VAT rate for the supply and installation of photovoltaic panels, solar thermal panels, heat pumps, and other high-efficiency, low-emission heating systems, as well as the delivery and installation of components for the repair and/or extension of these systems, will increase from 5% to 9% for both individuals and legal entities, with some requirements and declarations.
- The VAT rate for the services consisting of allowing access to sporting events, cinemas, cultural events, amusement parks, recreational parks, fairs, and exhibitions will increase from 5% to 9%, except for those that are exempted from tax.
- The VAT rate for the right to use sports facilities to practice sports and physical education will increase from 5% to 19%, except for those that are exempted from tax.
- The VAT rate for the transport of passengers by trains, historic steam-powered vehicles, cable transport installations, vehicles with animal traction, and boats for tourism or leisure purposes will increase from 5% to 19%.
- The VAT rate for the delivery of high-quality food, namely mountain, eco, and traditional products, authorized by the Ministry of Agriculture and Rural Development, will increase from 5% to 19%.
- The VAT exemption will apply only to the services of construction, rehabilitation, and modernization of hospital units provided to non-profit entities registered in the Public Register organized by ANAF if they are destined for hospital units owned and operated by the non-profit entity or those in the state public network.
- The VAT exemption will apply only to the supplies of medical equipment, devices, items, accessories, protective equipment, materials, and consumables for sanitary use, normally intended for use in health care or for use by disabled people, goods essential for compensating and overcoming disabilities, as well as adaptation, repair, rental, and leasing of such goods, made to non-profit entities registered in the Public Register organized by ANAF.
These changes will have an impact on the retail sector, as they will require the adjustment of prices because of the VAT changes.
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