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Romania tourism VAT cut

  • Aug 23, 2018 | Richard Asquith

Romania tourism VAT cut

Romania is reviewing cutting the VAT rate on tourism services. This would include hotel accommodation, and entrance into attractions, hotels and similar public events. Currently, tourism related services are subject to the standard 19% VAT rate. The government is now reviewing reclassifying them to the 5% reduced rate. Romania just postponed a scheduled VAT rate cut from 19% to 18% until 2020.

Most countries in the EU have reduced VAT rates on tourism and similar services to help subsidize their local industries. The UK and Denmark are the notable exceptions.

Country Hotel VAT rate Restaurant VAT rate Theatres, Cinema VAT rate Standard VAT rate
UK 20% 20% 20% 20%
Ireland 9% 9% 9% 23%
France 10% 10% 10% 20%
Germany 7% 19% 7% 19%
Italy 10% 10% 10% 22%


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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 won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.