The Romanian Ministry of Tourism has confirmed that certain tourism services will be subject to VAT at the reduced 5% rate by the end of 2018.
This change will be made under a package of measures aiming to revitalise the tourism sector.
The 5% rate of VAT is expected to apply 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.
Currently, these supplies of services are generally taxed at either the 9% reduced rate of VAT, or in the case of entertainment, sporting and recreational activities at the 19% standard rate.