In August 2025, a substantial overhaul of the Value-Added Tax (VAT) system will go into effect, introducing significant changes to the taxation of goods and services. This reform aims to simplify the existing framework by replacing the complex structure of multiple tax rates with a more uniform, two-tier system.
The provided information is based on the draft of the law, not the final published version. We will inform you when the draft law will be officially published.
Note!
As part of this change, the general VAT rate will be increased, and a single reduced rate will replace the multiple lower rates that previously applied to distinct categories.
The most notable VAT rate changes coming into effect are:
- Standard VAT rate will increase from 19% to 21%.
- A new reduced VAT rate of 11% will apply, replacing the current 5% and 9% rates.
- Only two VAT rates will remain: 21% (standard) and 11% (reduced).
Product and service VAT that will increase from 5% to 11%
The reduced VAT rate of 5% will be increased to 11% for several essential and cultural goods and services, including:
- Printed and digital books, newspapers, and magazines (in print and electronic formats, excluding audiovisual or advertising content).
- Firewood, including trunks, logs, branches, and twigs.
- Thermal energy consumed during the cold season by certain consumers.
- Access to cultural sites such as museums, monuments, botanical gardens, and other cultural institutions.
Product and service VAT that will increase from 9% to 11%
Certain goods and services will experience a smaller increase from 9% to 11%, including medicine (both human and veterinary), food and beverages for human and animal consumption, agricultural water for irrigation, chemical fertilizers and pesticides, water supply and sewage services.
Product and service VAT that will increase from 9% to 21%
Some goods and services currently taxed at 9% will move to the standard rate of 21%, including accommodation services, restaurant and catering services, housing delivered as part of social policy, supply and installation of renewable energy systems (photovoltaic panels, solar thermal panels, heat pumps, other high-efficiency heating systems), access to fairs and sports events.
The goal of this reform is to establish a more transparent and manageable VAT framework. However, it is expected that these changes will have wide-reaching implications for pricing, consumer costs, and business operations across multiple industries.
Should you have any questions about VAT rates in Romania, do not hesitate to contact us.
