Romania Confirms VAT Rate Increase as of August 1, 2025

From that date:

• The standard VAT rate increases to 21%
• A new reduced rate of 11% will apply, replacing the former 5% and 9% rates
  
  These changes are part of a broader fiscal effort to close the VAT gap and improve collection efficiency.
  
  The 11% reduced rate applies to:
  
• Medicines, food products, water supply, sanitation services, accommodation and most restaurant services
• School textbooks, books, museum and monument access
• Firewood and thermal energy for household heating
  
  

Other key changes:

For some products, the VAT rate increases directly from 9% to 21%, such as:

• Traditional cakes and biscuits
• Solar panels
  
  Also, certain VAT exemptions will be removed, including:

• Medical equipment
• Construction or renovation of hospital facilities by non-profit entities
  
  

What should you do?

If you operate in Romania, ensure your ERP and invoicing systems are updated before 1 August.

Need help reviewing your VAT setup or implementation? We’re ready.