Romania’s new fiscal law, effective August 1, 2025, increases the standard VAT rate from 19% to 21% and consolidates the reduced rates (5% and 9%) into a single 11% rate. The 11% VAT applies to key sectors like food, medicines, housing, cultural services, and hospitality, while raw materials will be taxed at the full 21%, potentially impacting pricing and refunds.
VAT rate updates in Romania, effective from August 1, 2025
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Romania
Author: Nikolina Basić
Category:
Fiscal subject related
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3035
Content accuracy validation date:
28.07.2025
Content accuracy validation time:
12:26h
Few days ago, Romania’s president officially signed the fiscal package, making it a new fiscal law that has been officially published in the Official Gazette, introducing changes to the country’s value-added tax (VAT) system. The updates will take effect starting August 1, 2025.
Main changes:
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Standard VAT rate rises from 19% to 21%.
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Reduced rates are unified into a single 11% rate, replacing 5% and 9%.
What Qualifies for 11% VAT:
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Medicines
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Most food items (excluding alcohol, sugary goods, and certain supplements)
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Water services and agricultural inputs
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Books and newspapers (with content limitations)
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Cultural site entries
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Heating materials and services
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Social housing and specific real estate types
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Hotel stays and restaurant services (without alcohol or sugary drinks)
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Finished food products qualify for the reduced rate.
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Raw materials face the full 21%, leading to refund and pricing challenges.
The HoReCa sector keeps the 11% rate—for now.
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