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Romania looks to cut VAT rate July 2015

  • VAT
  • 26 March 2015 | Richard Asquith

Romania looks to cut VAT rate July 2015

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%.

 


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.