The year 2024 marks an important point of change in Romania’s tax policy, with significant updates to the VAT rates applied in various sectors. The changes aim to stimulate certain economic sectors by adjusting VAT rates, either to simplify the tax system or to support social policies. Below, we detail the new VAT rate regulations for 2024.<\/span><\/p>\n In 2024, the VAT rate applicable to accommodation services in the hotel sector, including the rental of camping pitches, remains set at 9%.<\/span><\/p>\n This level of taxation is set to support continued economic growth in the tourism and hospitality sector. By applying this reduced rate, the government aims to make the hospitality industry more attractive to both domestic and foreign investors, thereby stimulating international and domestic tourism. This measure is very important as tourism can play a significant role in the post-pandemic economic recovery, generating important revenues for the economy and creating new jobs.<\/span><\/p>\n For the construction sector, including supplies of buildings as part of social policy, the VAT rate is 9%. This tax also applies to the land on which these houses are built, which is an attempt to facilitate access to housing for large sections of the population. By setting this reduced rate for buildings, the aim is to stimulate urban development and facilitate investment in new construction. This is an essential part of growth policy, with the potential to improve urban infrastructure and increase citizens’ quality of life.<\/span><\/p>\n The 9% VAT rate applicable to food, including certain beverages for human and animal consumption, continues to be an important pillar in fiscal policy to support access to essential products. This VAT rate also applies to live animals and poultry of domestic species, seeds, plants and ingredients used in the preparation of food, products used to supplement or replace food.<\/span><\/p>\n Excluding alcoholic and high-sugar beverages from this reduced rate is an attempt to promote a healthy lifestyle.<\/span><\/p>\n Keeping this quota low is intended to lessen the impact of inflation on living costs and ensure that food prices remain affordable for all segments of the population, thus contributing to national food security.<\/span><\/p>\n In 2024, VAT on housing delivered as part of social policy, including the land on which it is built, has been increased from a rate of 5% to a rate of 9%. The 9% VAT rate applies to the supply of dwellings with a useful floor area not exceeding 120 square meters, excluding household annexes, whose value, including the land on which they are built, does not exceed the amount of 600,000 lei, excluding value added tax, purchased by individuals individually or jointly with another individual\/other individuals. The reduced rate of 9% VAT applies only to dwellings which at the time of delivery can be lived in as such (is finished). Last but not least, as of January 1, 2024, any natural person may purchase, individually or jointly with another natural person\/other natural persons, a single dwelling whose value does not exceed 600,000 lei, excluding VAT, at the reduced rate of 9%.<\/span><\/p>\n The useful floor area of the dwelling is the sum of all the useful floor areas of the rooms. It includes: living room, bedrooms, bathrooms, WC, shower, kitchen, storage and circulation spaces inside the dwelling.<\/span><\/p>\n It does not include: the area of loggias and balconies, doorways, doorways with openings of up to 1,00 m, radiator recesses, and the areas occupied by stoves and bath boilers (0,50 m\u00b2 per stove and bath boiler), if heating is by stoves. In the case of duplex dwellings, the ramp, less landings, is not included in the useful floor area of the dwelling.<\/span><\/p>\n The publishing sector benefits from a reduced rate of 5% VAT on the supply of books, school textbooks, newspapers and magazines, in both physical and electronic formats. This measure is designed to promote education and culture by facilitating access to educational resources and literature at affordable prices for all segments of the population.<\/span><\/p>\n By maintaining this low rate, the government aims to stimulate reading habits, support the publishing industry and ensure wide circulation of cultural and educational information.<\/span><\/p>\n In the HORECA sector, VAT is 9% for restaurant and catering services, excluding alcoholic and certain non-alcoholic beverages. This reduced rate is intended to help the recovery of this sector, which has been hit hard by the pandemic restrictions. The tax reduction on beverages not included under this rate is designed to encourage healthier consumption choices. With this measure, the government wants to support local businesses, increase Romania’s tourist attractiveness and promote the hospitality industry as a vital driver of economic growth.<\/span><\/p>\n The VAT rate for tourism-related services, including accommodation and food, is set at 9% for 2024. This reduced rate is part of the efforts to boost domestic tourism and attract foreign tourists, thereby increasing the revenues generated by this sector.<\/span><\/p>\n In addition, maintaining a reduced quota for tourism services is important to maintain Romania’s competitiveness as a tourist destination on the international market. The measure will contribute to the development of the tourism infrastructure and the creation of new jobs, with a positive impact on the national economy.<\/span><\/p>\n These adjustments in VAT rates reflect a strategic approach aimed at promoting key sectors of the economy, supporting them in the face of challenges and facilitating access to essential services and goods for citizens. These changes are expected to have a substantial impact on economic and social growth in Romania.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" VAT CHANGES 2024 IN ROMANIA The year 2024 marks an important point of change in Romania’s tax policy, with significant updates to the VAT rates applied in various sectors. The changes aim to stimulate certain economic sectors by adjusting VAT rates, either to simplify the tax system or to support social policies. Below, we detail […]<\/p>\n","protected":false},"author":1,"featured_media":24408,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_ppma_block_editor_authors":""},"categories":[153],"tags":[],"ppma_author":[119],"class_list":["post-29782","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business-law"],"yoast_head":"\nVAT ACCOMMODATION 2024 IN ROMANIA<\/b><\/h3>\n
CONSTRUCTION VAT 2024 IN ROMANIA<\/b><\/h3>\n
VAT ON FOOD 2024 IN ROMANIA<\/b><\/h3>\n
VAT ON HOUSING 2024 IN ROMANIA<\/b><\/h3>\n
VAT CHARGES 2024 IN ROMANIA<\/b><\/h3>\n
HORECA VAT 2024 IN ROMANIA<\/b><\/h3>\n
VAT TOURISM 2024 IN ROMANIA<\/b><\/h3>\n