Romania - Proposed VAT Rate Cut
It is being reported that Romania’s new government - led by Viorica Dancila of the PSD party, who was earlier this week approved as the country's first female prime minister - is to propose a VAT rate cut from 19% to 18%, beginning on January 1st 2019.
The VAT rate cut to 18% should have been applied starting this year, according to PSD’s promises in the 2016 electoral campaign, but was postponed by the former government.
They have also proposed expanding and extending the reduced 5% VAT rate - currently applied for certain property transactions - to encompass various agricultural supplies. This would also apply from January 1st 2019.
Additionally, the new government has also promised to try and reduce fiscal bureaucracy. This will mean both individuals and businesses having to pay a maximum number of taxes and having the ability to submit any tax forms, and pay any tax owed, online.
If you have any issues with VAT in Romania, or require any international VAT assistance, please contact us.