New VAT Rules in Romania as of August 1, 2025
1. Starting from August 1, 2025, the standard VAT rate applicable for the supply of goods/services on the territory of Romania is 21%. 2. Starting from August 1, 2025, the use of the reduced VAT rate of 5% is abolished, and for the following supplies of goods and services, the VAT rate of 11% will apply:
- supply of human medicines
- supply of food and non-alcoholic beverages that are not sweet. The supply of alcoholic beverages, the supply of sweet non-alcoholic beverages (NC code 2202), and the supply of food containing more than 10 grams of sugar per 100 grams of product will be invoiced with the VAT rate of 11%
Note I: the only exception for maintaining the 11% VAT rate for sweet foods is the delivery of powdered milk for newborns and infants. Note II: there is no longer an exemption for the delivery of traditional sweet breads, cookies, and bee feed. These are subject to the 21% rate if the sugar content exceeds 10 grams per 100 grams of product.
- services for water supply and sewage
- services for water supply and sewage
- delivery of fertilizers and pesticides used in agricultural production
- delivery of seeds and other agricultural products intended for sowing or planting
- services in the field of agriculture
- delivery of school textbooks, books, newspapers, and magazines that do not have an advertising purpose
- services consisting of access to castles, museums, memorial houses, etc.
- delivery of firewood to individuals
- delivery of firewood to legal entities
- delivery of thermal energy in the winter season to certain consumers (population, hospitals, organizations).
Note: the supply of thermal energy to companies in the winter season will be billed at a rate of 21%.
- the delivery of social housing in the form of buildings used as nursing homes and residences for retirees or as rehabilitation centers for minors
Very important I: the application of the reduced VAT rate for the sale of social housing to individuals is repealed, such as it was, at the date of this analysis, the delivery of housing with a usable area of less than 120 sq. m and with a price lower than 600,000 lei, value excluding VAT. Very important II: for the current sale-purchase promises of social housing delivered to individuals, a transitional period is approved until July 31, 2026, during which a VAT rate of 9% applies. We will present these transitional measures in a subsequent communication.
- accommodation in the hotel sector, including the rental of land for camping
- restaurant and catering services
3. The reduced rate of 5% and 9% will no longer apply starting from August 1, 2025, with only a single reduced VAT rate of 11% for the goods and services described above.
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