Romania – VAT rate changes

The Romanian Parliament approved the following changes in VAT rates:

– Increase in the standard VAT rate from 19% to 21%,
– Replacing existing 5% and 9% reduced VAT rates with a new rate of 11%,

The changes in VAT rates have not yet been published in the Romanian Official Gazette, however given that they have been approved by the Romanian Parliament it is near certain that these changes will come into effect from 1st August 2025.

The fast coming change in VAT rate in a summer period, combined with introduction of SAF-T file and e-invoicing makes this year very complex for many businesses registered for VAT in Romania. There is a constant need to stay up to date with the recent developments requiring businesses to take fast actions not only when it comes to updating accounting software on time but also updating reporting system with the new reporting requirements to stay compliant.