Romanian and foreign tourists who choose Romania as a holiday destination will spend 10% less on accommodation and meals after the VAT on food is reduced to 9% starting in June, a measure added to the tax reduction on tourism packages since January 1st.
Prime Minister Victor Ponta announced that the value-added tax will be reduced to 9% starting in June for all agri-food products, including non-alcoholic beverages and public catering services.
The Government also maintains its intention to reduce the standard VAT rate to 20% starting in January, after budget revenues in the first quarter of this year were 5 billion RON higher than in the same quarter last year.
Source: Mediafax
Frequently Asked Questions
By how much will tourist spending in Romania decrease?
According to ANT, tourists will spend approximately 10% less on accommodation and meals following the VAT reductions.
When does the 9% VAT reduction for food take effect?
The VAT reduction to 9% for all agri-food products and public catering services comes into effect starting in June.
What other tax measures are being implemented?
In addition to the food VAT cut, tourism packages saw a tax reduction on January 1st, and the standard VAT rate is planned to drop to 20% in January.