Romania to Increase VAT Rates from August 1, 2025

Key VAT changes proposed:

• The standard VAT rate will increase from 19% to 21%
• The current 5% reduced VAT rate will be scrapped, with most of those goods and services moving to an 11% rate; a limited number will become standard rated
• Most items currently taxed at 9% will also shift to the 11% rate, with some exceptions. For example, new housing paid in advance before August 1, 2025 can still benefit from the 9% rate if delivered by August 1, 2026

These VAT changes are part of a wider reform including increases to excise duties (alcohol, tobacco, fuel) and direct taxes (such as dividend and social security contributions).

Status and next steps

Although the draft law is still under debate, the VAT-related amendments have already been voted in Parliament, meaning implementation is very likely. While the formal consultation period is 30 days, this may be shortened given the intended effective date.

What does this mean for you?

If you’re trading in Romania, it’s strongly recommended to review and update your tax and accounting systems as soon as possible to reflect the new VAT rates.

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