Romania cuts VAT to 20% in 2016
Romania has committed to reduce its standard VAT rate from 24% to 20% in 2016. The Romanian VAT rate was originally raised from 19% to 24% at the height of the financial and Euro crises in 2010. There is also a plan to cut the rate again to 18% in 2018 if the budget can support the loss in revenues.
Cut in reduced Romanian VAT rate
Romania has also promised a reclassification of tourist service from the standard Romanian VAT rate to the reduced 9% rate. This follows countries such as Greece and Ireland which have seen boosts in their visitor numbers which is claimed is partially down to the use of reduced VAT rates on tourism.
Some other basic foodstuffs will also move to the 9% rate.