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Romania proposed VAT cut to 16% 2020


The Romanian Senate is considering cutting the country’s standard Value Added Tax rate from 19% to 16% on 1 January 2020. The reduced VAT rate would also be reduced from 9% to 5%.

A 1% VAT cut to 18% was last proposed for implementation at the start of 2019. However, the fiscal position prevented it going ahead.

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 three steps in 2016 and 2017. 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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Researching Romanian VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade. 

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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.
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