Key takeaways
- Standard VAT rate will increase from 19% to 21% effective August 1, 2025.
- Reduced VAT rates (5% and 9%) will be merged into a single 11% rate, simplifying the system.
- The 11% reduced rate will cover key sectors — food, non-alcoholic drinks, medicines, books, utilities, accommodation, and catering.
- Businesses must update billing, pricing, and contracts promptly to stay compliant.
- Early preparation and communication will minimize disruption and ensure smooth adaptation to new rates.
In short: Romania raises its standard VAT rate from 19% to 21% on August 1, 2025. On the same date, the two reduced rates of 5% and 9% merge into one 11% rate. Businesses in Romania need to update billing, contracts and prices before the new rates take effect.
Update (October 2026): Romania's 21% standard rate and 11% reduced rate are now in force, as listed in the EU's official VAT rates table.
Romania will overhaul its VAT system on August 1, 2025. The standard VAT rate will rise from 19% to 21%. At the same time, the current two reduced rates of 5% and 9% will become a single reduced rate of 11%.
The new 11% reduced rate will apply to a broad range of goods and services. These include food and non-alcoholic beverages, medicines, water supply and sanitation, books and publications. Hotel accommodation and restaurant and catering services are also covered.
The Romanian VAT changes are part of a wider fiscal reform package. It was signed into law in July 2025 and published in the Official Gazette. The government aims to simplify the VAT structure and boost revenue to ease budget pressures.
Businesses operating in Romania will need to act quickly to stay compliant. You should:
- update billing and accounting systems;
- revise contracts that mention VAT rates;
- adjust your pricing structures;
- clearly tell customers the new VAT-inclusive prices.
Planning ahead will help you minimise disruption when the new rates take effect.
What does this mean for businesses selling to Romania from abroad?
The new rates also matter for sellers outside Romania. EU businesses selling goods or services to Romanian consumers through the One Stop Shop (OSS) charge Romanian VAT. Since August 1, 2025, those sales carry 21% or 11%, depending on the product.
Check the rates in your OSS settings and on your checkout pages. The EU’s official VAT rates table lists Romania’s standard rate as 21% and its reduced rate as 11%.
What else falls under Romania’s 11% reduced rate?
Beyond food, medicines and accommodation, the 11% rate reaches several less obvious supplies. The list is set out in Article 291 of the Fiscal Code, as amended by Law 141/2025.
- Culture and leisure: admission to castles, museums, memorial houses, historic monuments, archaeological sites, zoos and botanical gardens.
- Heating: district heating during the cold season, from November 1 to March 31, for households, hospitals, schools and some non-profit bodies.
- Wood fuel: firewood, wood pellets and briquettes sold to individuals and institutions, until December 31, 2029.
- Agriculture: fertilisers, pesticides and seeds normally used in farming, plus some agricultural services, until December 31, 2031.
- Water: water supply and sewerage, and irrigation water for agriculture.
Some items are carved out. Alcoholic drinks, some soft drinks and food supplements do not get the 11% rate. Books and publications mainly made up of video, music or advertising are also excluded.
Did any 9% rates continue after August 1, 2025?
Yes, for housing only, and on strict conditions. Law 141/2025 let a buyer purchase one home at 9% VAT between August 1, 2025 and July 31, 2026.
- The buyer must have signed a prepayment contract by August 1, 2025.
- For contracts signed between July 3 and 31, 2025, a 20% advance had to be paid in full by July 31, 2025.
- The buyer must not have bought another home at a reduced rate since January 1, 2023.
- Notaries must check a register of reduced-rate home purchases and record the rate applied.
A separate 9% rate covered buildings and land supplied to local councils for subsidised rental, until August 1, 2026. Prepayment contracts again had to be signed by August 1, 2025.
How do the new rates change a price?
VAT is added to the net price, so a two-point rate rise adds two units per 100 of net price. A worked example:
- Standard-rated item, net price RON 100: the gross price rises from RON 119 at 19% to RON 121 at 21%.
- Item moved from 9% to 11%, net price RON 100: the gross price rises from RON 109 to RON 111.
- Item moved from 5% to 11%, net price RON 100: the gross price rises from RON 105 to RON 111.
If you keep gross shelf prices unchanged, the VAT comes out of your margin instead. Check which approach each contract allows.
Key dates
- July 2025: The fiscal reform package is signed into law and published in the Official Gazette.
- August 1, 2025: The standard rate rises to 21%, and the 5% and 9% rates merge into a single 11% rate.
How Taxually handles this
Taxually’s CrossTax handles VAT registration, VAT, OSS and IOSS returns and fiscal representation in the countries you sell into, and checks your sales data against 250+ validation rules before each filing. OneTax then pays every tax authority with one bulk payment in your chosen currency.
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Frequently asked questions
What VAT changes did Romania make on August 1, 2025?
Romania raised its standard VAT rate from 19% to 21%. On the same date, the two reduced rates of 5% and 9% merged into a single 11% rate.
Which goods and services fall under Romania's 11% reduced VAT rate?
The 11% rate covers food and non-alcoholic beverages, medicines, water supply and sanitation, and books and publications. Hotel accommodation and restaurant and catering services are also covered.
Why did Romania change its VAT rates?
The changes are part of a wider fiscal reform package signed into law in July 2025. The government aims to simplify the VAT structure and boost revenue to ease budget pressures.
What should businesses operating in Romania do about the new VAT rates?
Businesses should update billing and accounting systems, revise contracts that mention VAT rates, adjust pricing, and clearly tell customers the new VAT-inclusive prices.
What is the VAT rate in Romania in 2026?
Romania’s standard VAT rate is 21%, and its reduced rate is 11%. Both have applied since August 1, 2025.
Did a 9% VAT rate continue in Romania after August 1, 2025?
Only under transitional rules for housing. Law 141/2025 allowed one home to be bought at 9% between August 1, 2025 and July 31, 2026, if a prepayment contract was signed by August 1, 2025.
Is museum admission taxed at 11% in Romania?
Yes. Admission to castles, museums, memorial houses, historic monuments, archaeological sites, zoos and botanical gardens falls under the 11% reduced rate.
Are alcoholic drinks taxed at 11% in Romania?
No. Alcoholic drinks are excluded from the 11% rate, both as food products and in restaurant and catering services.
