Potential upcoming VAT changes
The fiscal trajectory in 2022 has been a busy one for Romania as it grapples with a partial e-invoicing mandate and multiple tax rates changes. The Ministry of Finance has opened a consultation which proposes an increase in tax rates from 1st January 2023, in line with the following:
- Fizzy drinks reclassified from 9% reduced VAT rate to standard 19% rate
- Hotel and similar short-term accommodation raised from 5% to 9% reduced rate
- Catering services, cafés and restaurants reclassified from 5% reduced rate to 9% for food and non-alcoholic drinks
- 5% reduced rate on a range of small dwellings.