Following our recent story outlining the expected VAT rate changes on certain tourism services by the end of this year, the Romanian government has adopted an emergency ordinance under which the reduced 5% rate of VAT will apply as of 1st November 2018 to:
- Hotel accommodation and similar services;
- Renting of campsites;
- Restaurant and catering services excluding alcoholic beverages other than beer; and
- Sports, recreational activities and entertainment.
The aim of this initiative is to stimulate Romania’s tourism sector.