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.

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.