Romania – Decrease of the VAT rate from 24% to 20% as from 1 of January 2016

Romania decided to decrease the standard VAT rate from 24% to 20% with effect from 1 January 2016 and to 19% with effect from 1 January 2017. Also, the 9% reduced VAT rate previously applied will decrease to 5% VAT for the supply of school manuals, books, newspapers and some magazines, as well as for the supply of services consisting in the allowance of access to castles, museums, cinemas. The reduced rate of 5% VAT will also be applied for access to sportive events.

As well of interest is the introduction of reverse charge mechanism for the supply of mobile phones, devices that use integrated circuits, laptops, PC tablets and game consoles as from 1 of January 2016. This provision will be in force until 31 December 2018.

Reverse charge will be as well applicable for supply of buildings, parts of buildings and land.

For further details please contact my colleague from PwC Romania: Daniel Anghel ( on Office: +40 21.225.3688 | Mobile: +40.742.394.208

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