Romania cuts VAT to 18% 2019
- Jan 28, 2018 | Richard Asquith
Romania has proposed a 1% VAT rate cut to 18% from 1 January 2019. The decrease comes as part of a package of tax simplifications.
In addition to the reduction in the standard rate, the 5% reduced VAT rate will be extended to a number of property and agricultural supplies.
Following the financial crisis, Romania was forced to raise its VAT rate from 19% to 24% in 2010. Over the past two years, it has reduced this down to 19% in two steps. Romania has the EU’s largest VAT Gap, a shortfall between anticipated VAT collections and actual revenues. It plans to introduce a limited range of split VAT payments to help tackle this shortfall.
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