VAT Rates in Romania
A supply subject to taxation refers to the distribution of goods or services that are liable for VAT, including instances where the VAT rate is zero. In Romania, the usual VAT rate stands at 19%, with specific goods and services attracting lower rates of either 9% or 5%. Moreover, particular services, notably in the health and education sectors, are not subject to VAT.
Read more regarding VAT rates in Romania in our comprehensive guide below.
VAT Rates in Romania
|
Standard VAT rate |
||||
| The primary VAT rate, or the standard rate, is the main rate applied to goods and services in a country, generally covering the majority of items, except those qualifying for reduced rates. Exemptions to this standard rate often include essential goods or services that fulfill certain specified criteria. | ||||
| Rate | Good or Services | |||
| 19% | All other taxable goods and services | |||
|
Reduced VAT rates |
||||
| Below are some goods and services that may be eligible for a reduced value-added tax (VAT) rate, and are subject to potential modifications: | ||||
| Rate | Good or Services | |||
| 9% | First Reduced Rate | |||
| Medicines and medical equipment for human and veterinary use. | ||||
| Food products and nonalcoholic beverages not subject to the second reduced rate. | ||||
| Water supply and sanitation services, as well as water used for drinking and irrigation. | ||||
| Agricultural products and services, including fertilizers and pesticides. | ||||
| Starting from January 1st, 2023: Accommodation services provided by hotels and other similar establishments, including campgrounds. Restaurant and catering services, with the exception of alcoholic beverages and certain specified non-alcoholic beverages. | ||||
| 5% | Second Reduced Rate | |||
| Books, including school textbooks, newspapers and magazine not used for advertising. | ||||
| Admission to recreational parks, fairs, amusement parks, zoos, memorial houses, museums, castles, and other similar attractions, including sporting facilities. | ||||
| Social housing, which includes the land on which it is constructed, is used to house the elderly, retirees, children, recovery, and rehabilitation institutions for minors and the destitute, etc. | ||||
| Housing for single people that is habitable at the time of purchase with a land area of 120 square meters (maximum) which costs not more than RON 600,000; starting 1 January 2023, the cost should not exceed the equivalent amount of EUR 700,000. | ||||
| Tourist or recreational transportation through narrow-gauge railroads or vintage steam engines, cable chair, chair lift, or ski lifts, vehicles drawn by animals, or boats. | ||||
| High-quality traditional, organic, or mountain-produced food and drink (excluding alcoholic beverages), as approved by the Ministry of Agriculture and Rural Development. | ||||
| Transactions involving the provision of firewood until the end of December 31, 2029. | ||||
| Winter heating services provided to designated customer groups. | ||||
| 0% | Zero rated | |||
| Goods and certain related services, including transportation services that are directly connected to the export of goods. | ||||
| Goods that meet certain requirements and are traded within the European Union. | ||||
| International passenger transportation. | ||||
| Supplies of goods and services related to maritime and aviation transportation. | ||||
| Goods intended for placement in a suspensive customs regime, as well as related services. | ||||
| Certain activities performed in areas designated as free trade zones and free warehouses. | ||||
| Services provided for goods that are imported into Romania for processing purposes and subsequently transported outside the European Union. | ||||
| Supplies of goods to embassies, consulates, diplomatic missions, international organizations, and military forces of the North Atlantic Treaty Organization (NATO). | ||||
| Gold supplies to the National Bank of Romania. | ||||
|
Exempt From VAT |
||||
| Provision of real estate properties such as land, buildings, and structures through renting, leasing, or selling. | ||||
| Provision of insurance or reinsurance policies that cover risks such as life, health, property, and liability. | ||||
| Delivery of letters, parcels, and other postal items by the national postal service or authorized postal operators. | ||||
| Activities such as betting, gambling, and lottery games. | ||||
| Financial transactions such as lending, borrowing, and investing in securities. | ||||
| Services such as tuition fees, education materials, and other education-related services. | ||||
| Medical treatments, services provided by healthcare professionals, and hospital services. | ||||
| Membership fees and subscriptions paid to trade unions, professional bodies, and other public interest organizations. | ||||
| Activities such as sports events, gym classes, and other physical education services. | ||||
| Services related to cultural activities such as museums, art exhibitions, and concerts. | ||||
Various countries announced short-term adjustments to their VAT rates in response to COVID-19. This resulted in reductions to the VAT rates on products and services sold by businesses that were particularly hit hard by the pandemic’s economic fallout, such as the hospitality sector. To learn more about the implications of COVID-19 in Romania, please visit our news section by clicking here.
Last Updated: 02/01/2024
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
