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Romania cuts tourism VAT to 5%

  • Sep 5, 2018 | Richard Asquith

Romania cuts tourism VAT to 5%

Hotel accommodation and restaurant services in Romania are to be recategorised from the first reduced VAT rate of 9% to the second reduced 5% rate. The standard VAT rate for all other goods and services in Romania is 19%.

Romania recently confirmed that it will not cut its VAT rate to 18% on 1 January 2019, as planned.

Many EU countries, such as Ireland and Germany, have long provided a tax subsidy to this key sector, with considerable boosts in job creation and international visitor numbers.

Country Hotel VAT rate Restaurant VAT rate Theatres, Cinema VAT rate Standard VAT rate
UK 20% 20% 20% 20%
Ireland 9% 9% 9% 23%
France 10% 10% 10% 20%
Germany 7% 19% 7% 19%
Italy 10% 10% 10% 22%

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.