As we mentioned in the previous news on this subject, President Nicușor Dan has officially signed the new fiscal package, which notably includes the increase in VAT rates. These measures will come into effect on 1 August 2025 and provide that:
- The standard rate of VAT will increase from 19% to 21%.
- A single reduced rate of 11% will be applied instead of the former 5% and 9% rates.
The reduced rate of 11% will apply to:
- Medicines for human use
- Food products (excluding alcoholic beverages, sweet products containing more than 10g of sugar per 100g, and certain dietary supplements)
- The supply of water and irrigation services
- Agricultural inputs: fertilisers, pesticides, seeds, and related services
- Books, newspapers, and magazines (excluding publications primarily containing audio, video, or advertising content)
- Access to cultural sites: museums, castles, botanical gardens, etc.
- Firewood and wood pellets (under certain conditions)
- Thermal energy for heating (for certain categories of consumers)
- Social housing and certain similar real estate properties (strict definitions)
- Hotel accommodations and campsites
- Restaurants and catering services (excluding alcoholic and sugary beverages)
Transitional rules for real estate
The 9% reduced rate applied to housing will be abolished from 1 August 2025.
Buyers who have signed a pre-contract before this date will be able to benefit from the reduced rate, provided they can prove a minimum deposit of 20%.
Need more information?
If you want to learn more about the impact of these fiscal changes on your business, do not hesitate to contact the experts at ASD Group. They can assist you in understanding and implementing these new obligations.
Source: Romanian Parliament (in Romanian)
