The Ministry of Tourism announces that it has established, in accordance with the Government’s action plan for the period September-December 2018, several measures to improve the activity of the tourism sector in Romania.
Among these measures is the application of a 5% VAT rate for areas such as accommodation within the hotel sector or sectors with a similar function, including the rental of prepared camping grounds, restaurant and catering services, with the exception of alcoholic beverages other than beer, sports, recreational, and entertainment activities. Currently, the VAT for accommodation is 9%.
Also, another measure will be the unblocking of spa tourism through zero royalties for geothermal water and natural mineral water used for public consumption at public fountains.
In addition, local authorities and commercial companies will be able to access money from the investment fund, money specifically intended for the development and modernization of spa resorts.
The Government’s estimate for the development of spa tourism provides for investments of at least EUR 1 billion through projects over the next 10 years.
The Ministry of Tourism will finalize the Tourism Law, the normative act through which the guidelines for the operation of services in the field of tourism will be established, a law that will have as its main purpose the promotion of Romania as a tourist destination and the increase in the number of domestic and foreign tourists.
A first step in this direction was taken through the decentralization memorandum in the tourism sector, which has already been adopted by the government, so local authorities are to take over some of the ministry’s duties.
Source: Profit
Frequently Asked Questions
What is the new VAT rate for Romanian tourism services?
The VAT rate is set to decrease to 5% for accommodation, restaurant, and catering services, down from the previous 9% for accommodation.
How will the spa tourism sector benefit from these measures?
The sector will benefit from zero royalties on geothermal and mineral water for public consumption and access to a dedicated investment fund.
What is the long-term investment goal for Romania’s spa resorts?
The Romanian government estimates investments of at least 1 billion EUR into spa resort development projects over the next 10 years.