Reduced VAT rate could boost Romania's recreational services market sevenfold by 2021

Reducing the VAT rate for recreational services from 19% to 9% would increase the number of visitors in recreational facilities in Romania by an average 30% per year by 2021, according to an analysis by PwC Romania. This would also increase the overall turnover in this sector almost seven times, from an estimated RON 36 million (EUR 7.74 million) this year to RON 240 million (EUR 51.6 million) in 2021. The state would also gain from this evolution as its revenues from this sector would increase by about RON 340 million (EUR 73 million) in the analyzed period, according to the same report. A lower VAT rate for recreational services would also help Romania reduce the incidence of death due to cardiovascular disease, which is three times higher than the EU average. Only 15.6% of Romania’s population allots at least one hour a week for sports and recreational activities, compared to a EU average of over 50%. editor@romania-insider.com