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Romania will not reduce austerity 24% VAT rate yet

  • VAT
  • 19 March 2014 | Richard Asquith

Romania will not reduce austerity 24% VAT rate yet

The Romanian government has confirmed that it will not be in a position to reduce the 24% VAT rate unless it can extend the current growth of over 3% through to 2015.

Financial crisis VAT increases

Along with neighbouring Central and Eastern European countries, Romania raised its VAT rate from 19% to 24% in 2010 as the financial crisis swept Europe. At the time, the government promised to return the rate to 19% once the economy regained stability.

In 2013, the country registers a growth rate of 3.5%. If this can be matched in 2014, then the government will be in a position to review the inflated VAT rate.

In the meantime, there may be a reclassification of meat, fruit and vegetables from the standard rate to the reduced 9% rate.


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.