The Romanian government has presented a draft bill aimed at reducing the budget deficit. The main tax measures, published on 3 July 2025, include:
- An increase in the standard VAT rate to 21% from 1 August 2025 (instead of the current 19%).
- The introduction of a single reduced VAT rate of 11% (instead of the current 5% and 9%), applicable to essential goods (food, medicines, books, water for irrigation, firewood, thermal energy).
- An increase to 21% in VAT on new housing, except for specific cases benefiting from a transitional provision until 1 August 2026.
The full draft bill is available in the source below. We will keep you informed as soon as the final text is published.
For more information or any questions, contact our experts.
Source: mfinante.gov.ro (in Romanian)
