Romania looks to cut VAT rate July 2015
- Mar 25, 2015 | Richard Asquith
The Romanian government is contemplating bringing forward cuts to its VAT rate to 1 July 2015.
The current Romanian VAT rate is 24%. It was set at this rate in 2010 when it was increased from 19% during the height of the Euro crisis. The reduced VAT rate is 9%.
The government has declared that it will either cut the standard to 20% or the reduced VAT rates in July. Earlier this year, the government had indicated that it would cut the Romanian standard rate to 20% at the start of 2016, with a further cut to 18% coming in 2018 subject to continued economic improvements.
A decision is expected in April. Romania is due to hold national elections in 2016.
The average EU VAT rate is just below 22%.