On Thursday 3 July 2025, the Romanian Prime Minister announced a package of tax measures aimed at reducing the country’s budget deficit.
As part of this reform, VAT rates will increase as follows:
- The standard VAT rate will increase from 19% to 21%.
- The current reduced rates of 5% and 9% will be merged into a single 11% rate. This new rate will apply to foodstuffs, medicines, books, firewood, water, and services in the hospitality sector (hotels, restaurants and cafes).
These changes will come into effect on 1 August 2025.
