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Romania cuts VAT to 18% 2019

  • EU VAT
  • 29 January 2018 | Richard Asquith

Romania cuts VAT to 18% 2019

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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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 is part of the European leadership team which this year won International Tax Review's 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.