Romanian VAT Rate changes for 2024

Effective from January 1, 2024, VAT rates in Romania are subject to a significant rise. Find below an overview of the changes that will come live in a few days.

The reduced VAT rate of 9% will be applied to the following services and supplies of goods, as per the amendments introduced by Law 296/2023 to the Fiscal Code:

• Goods: This rate applies to the delivery of various goods, including food and beverages for human and animal consumption, live animals, seeds, plants, and food-related ingredients, except for specific items like alcoholic beverages, certain non-alcoholic beverages, and foods with added sugar exceeding 10 g/100 g product (excluding cookies and biscuits).
• Green Energy: The reduced rate also covers the delivery and installation of environmentally friendly energy solutions, such as photovoltaic panels, solar panels, thermal systems, heat pumps, and other high-efficiency heating systems with low emissions. These products must meet specific ecological design criteria and energy efficiency standards.
• Construction: Additionally, the reduced rate applies to the delivery and installation of these energy-efficient systems as part of construction deliveries, including extra options when delivering a construction, but with exceptions.
• Entertainment and Sports: Services allowing access to bars, amusement parks, recreational parks, fairs, exhibitions, cinemas, and cultural events (excluding tax-exempt ones) and services allowing access to sports events will also be taxed at the reduced rate.

Please note that the items listed under the 9% VAT rate were previously taxed at a 5% rate until December 31, 2023.

The VAT rate increases from 9% to 19% for the following supplies:

• Alcohol-free beer
• Foodstuffs with added sugar of more than 10gr per 100gr of product. Only exception are cookies and biscuits.

Similarly, the VAT rate increases from 5% to 19% for the following supplies:

• Use of sports facilities under certain activity classifications, unless they are exempt.
• Transport of passengers by train or historic steam vehicles, as well as cable transport facilities and animal carriages for tourist and entertainment purposes.

Finally, the Government has withdrawn the VAT exemptions with right to deduct connected to supplies to public hospitals:

• Construction, rehabilitation, and modernization services
• Supplies of medical equipment
• Adaptation, repair, rental, and leasing of medical equipment.