Romania cuts VAT rate on bread
- Aug 9, 2013 | Richard Asquith
The Romanian Value Added Tax rate on bread is to drop from the standard Romanian rate of 23% to the reduced rate of 9% from 1 September 2013. Bread was originally reclassified from the reduced rate to the standard rate in 2000.
The Romanian VAT rate rose to 24% in 2010 as part of a range of austerity measure to help stablise the rising government debt.
Aside from helping consumers, the move is also to help reduce VAT fraud as many small bakeries are not fully charging VAT. There are to be a number of rises in excise duties, on gold and other precious metals, to help fund this VAT rate decrease.