ROMANIA: The new Fiscal Code reduces VAT starting January 2016 | Progresiv

The Fiscal Code draft, which features the reduction of general VAT rate from 24% to 19% from January 1^st 2016, was approved in the Chamber of Deputies, the decisional chamber. VAT on food and non-alcoholic beverages will remain at 9%.

Also, according to the new Fiscal Code, as of January 1^st 2016, the excise duties on beer and spirits will drop, the tax on special constructions as well as the 7 eurocents excise per liter of fuel will be eliminated, while the flat tax will drop from 16% to 14% starting January 1^st 2019.

Moreover, social security contributions for employees will be reduced from 10.5% to 7.5% and those paid by employers will drop from 15.8% to 13.5% from January 1^st 2018.

The Deputies also approved the Fiscal Procedure Code.