Romania could remove VAT for foreign tourist accommodation

The Economy Ministry, which also manages tourism-related issues, will resume talks with the Finance Ministry to cut the VAT rate to zero for the accommodation of foreign tourists, according to a government document drafted at the beginning of the month, cited by local Profit.ro. The idea was launched four years ago, but failed to be adopted. Removing the VAT would be the first step in attracting more foreign tourists. Authorities plan to bring more tourists from USA, Great Britain, Russia, Germany, Italy, France, Austria and Hungary. Out of 2,000 tourism agencies operating in Romania, only 20 of them bring foreign tourists to Romania. The rest send Romanians to resorts in the country or abroad. editor@romania-insider.com