Starting August 1, 2025, Romania’s Law No. 141/2025 implements a VAT reform raising the standard rate from 19 % to 21 % and consolidating all reduced rates into a single 11 % tier, replacing existing 5 % and 9 % rates
What stays at 11 % VAT:
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Food and non‑alcoholic beverages (with exceptions)
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Human medicines
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Books, newspapers, magazines (excluding audio/video)
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HoReCa services (dining, hotel stays, catering)
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Water supply, sewage services, firewood, thermal energy
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Access to cultural venues (museums, gardens, castles, exhibitions)
Everything else will be taxed at the 21 % standard rate.
Real estate impact:
New residential properties under 120 sqm and 600 000 lei net, previously taxed at 9 %, will now attract 21 % VAT after August 1 Transitional provisions allow individuals with pre‑contracts and at least 20 % down payment made by July 31 to retain 9 % VAT until July 31 2026.
Other tax measures:
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Non‑profit exemptions (e.g. solar panels, medical devices) are revoked: these will now incur 21 % VAT .
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Excise tax increases from August: fuel +10 %, alcohol +10 %, tobacco +3 %, sugary drinks → added consumer price pressure .
What it means for you:
This VAT hike is a broad fiscal shock affecting everyday goods, services, real estate, and business operations. Whether you’re a consumer, entrepreneur, or buying property, ensure correct VAT use and anticipate cost increases.
✍️ Author: Bejenaru Alexandru Ionut – [email protected]
🔗 Internal link: https://diagnozabam.ro/sfaturi
