Romania Raises VAT Rates Effective August 1

Romania passed the Law on Fiscal-Budgetary Measures on July 14th, 2025. The law increases the Value Added Tax (VAT) rates, among other financial measures. The standard VAT rate will now be 21%, raised from its previous rate of 19%. The two reduced rates of 5% and 9% are being consolidated and raised to 11%. The new 11% reduced rate broadly targets the same items as the previous 5% and 9% rates, with a few exceptions, such as animal medications, now being subject to the 21% standard rate.