On January 14, the Government approved the reduced VAT rate of 9% for accommodation services with half-board/full-board/all-inclusive. The estimated budgetary impact for this year is 100 million RON.
"In order to apply the reduced VAT rate of 9% for accommodation services with half-board/full-board/all-inclusive, the Government approved the decision to amend the methodological norms for applying the Fiscal Code, with the aim of correlating fiscal legislation regarding the application of the reduced VAT rate with specific legislation in the field of tourism. Following the way the notion of accommodation is defined in specific tourism legislation, the reduced VAT rate of 9% applies to accommodation, but also to services accessory to accommodation, sold or offered for sale at the inclusive price of the tourist package, such as lunch, dinner, snacks between meals, other tourist leisure services offered with the tourist reception structure’s own means," the Government announced in a press release.
Currently, the 9% VAT applies only to packages containing accommodation and breakfast.
Source: Cotidianul
Frequently Asked Questions
Which tourism services are eligible for the 9% VAT rate?
The 9% VAT rate applies to accommodation packages that include half-board, full-board, or all-inclusive services, as well as accessory services like snacks and leisure activities.
How does this change the previous VAT application?
Previously, the 9% reduced VAT rate was only applicable to accommodation and breakfast packages; other meal plans were taxed at a higher rate.
What is the estimated budgetary impact of this VAT reduction?
The Romanian Government estimates that the reduction in VAT for these tourism services will have a budgetary impact of 100 million RON this year.