ROMANIA: VAT to be reduced to 9% for food products, starting June | Progresiv

Value added tax will be reduced from 24% to 9% as of June, for all food products, announced Prime Minister Victor Ponta. The measure will be valid for soft drinks and catering services as well.

Also, starting early next year, VAT will be reduced for all goods and services from 24% to 20%, the government said.

The Prime Minister said that the measure of the reduction of VAT can be applied, given that the budget revenues were 5 billion lei higher in the first quarter of this year compared to the first three months of last year.

Initially the Government announced that it would decide either generalized decrease of VAT to 20% or reduced VAT of 9% for foods only.