Romania to reportedly hike VAT rate by 2pp to 21%

A 2 percentage point (pp) rise in the value added tax (VAT) rate to 21%, along with an increase in other tax rates, is imminent and could be announced in May, possibly sooner, according to Economica.net.

Disappointing Q1 budget execution data, such as the 2.3%-of-GDP deficit mentioned by Profit.ro citing sources within the Finance Ministry, could trigger such an announcement sooner rather than later.

The VAT rate hike could come into effect as soon as possible, possibly even before the first round of the presidential elections (May 4), but most likely between the two rounds, claim “political and administrative sources close to the situation” quoted by Economica.net.

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