On April 1st, deputies adopted the project for modifying the Government ordinance through which tourist reception structures are classified so that the 9% VAT rate applies to accommodation and its accessory services when offered as a tourist package.
The Executive proposes modifying GEO 58/1998 regarding the organization and conduct of tourism activity in Romania because it „does not provide for the types of accommodation so that the reduced VAT rate of 9% can be applied to them.”
Through this vote, Ordinance 58/1998 was completed with a new article, 2-prime, according to which accommodation in tourist reception structures with tourist accommodation functions can be: accommodation without breakfast, accommodation with breakfast, accommodation with half board, accommodation with full board and all-inclusive accommodation.
Source: Economica
Frequently Asked Questions
What changes does the new law project bring for tourism?
The project clarifies the types of accommodation (breakfast, half board, full board, all-inclusive) to allow the application of the reduced 9% VAT rate.
Why was the modification of GEO 58/1998 necessary?
The modification was necessary because the old form of the ordinance did not specify the types of accommodation eligible for the reduced VAT rate.
What services are included in the 9% VAT rate according to the new law?
The 9% rate applies to accommodation and accessory services offered as a tourist package, regardless of the chosen meal plan.