(P) Tax Alert: Application of the 9% reduced VAT rate for bread and bakery products

Order no. 1436/852 of 26 August 2013, published in the Official GazetteNo. 543 of 28 August 2013 Clarifications were introduced concerning products for which the reduced VAT rate of 9% applies. The order defines the bakery products such as bread, as well as croissants, rolls, sticks, pretzels, miniloafs, loafs and braided bakery products, which benefit from the reduced VAT rate. Moreover, the provisions of the order mention inter alia that products within the croissants, rolls, sticks, pretzels, miniloafs, loafs and braided bakery products category which have any kind of filling cannot benefit from the reduced VAT rate. For additional information, please contact: Venkatesh Srinivasan, Partner – Head of Tax and Legal Ernst & Young SRL and E. Platis, C. Bazilescu LLLP 15-17 Ion Mihalache Blvd. Bucharest Tower Center Building 22nd Floor, sector 1 011171 Bucharest, Romania Tel: (40-21) 402 4000 Fax: (40-21) 310 7124 (p) - this article is an advertorial