The Romanian government has confirmed a VAT rate reduction on foodstuffs, non-alcoholic drinks and catering services to 9%.
VAT on these supplies is currently charged at the standard rate of 24%. The changes will take effect on 1 June 2015.
The Romanian government had initially proposed a plan to cut its standard VAT rate from 24% to 20% by 1 July 2015. However, having considered the country’s finances the government has now stated that the VAT rate may be cut to 20% from January 2016, and further cut to 18% in 2017.