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Romania reconfirms 2016 VAT rate cut to 19%

  • VAT
  • 23 June 2015 | Richard Asquith

Romania reconfirms 2016 VAT rate cut to 19%

The Romanian House of Deputies Budget Committee has reconfirmed plans to reduce the standard Romanian VAT rate from 24% to 19% in 2016. It is expected to be confirmed by the Parliament immediately.   The cut is based on a quicker than expected return to growth in the country. There are discussion for a possible cut even sooner.

The European Commission has immediately criticised the proposal as undermining Romania’s fiscal position. The International Monetary Fund has also previously warned against it too. Romania has an emergency €4billion fund to tap into, but this expires in the autumn.

The proposal on Wednesday will push to return VAT to 19%. Romanian VAT was raised to 24% in 2010 at the height of the financial and Euro crisis. A final decision will take place by the end of this month.


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.