Romanian Govt. cuts VAT rate for hotels, restaurants and leisure parks to 5%

Romania’s Government adopted an emergency ordinance on Thursday, October 4, that cuts the VAT rate for hotel accommodation, restaurant and catering services and leisure services to 5%. Romania will thus have one of the lowest VAT rates in the tourism sector of all EU member states. The measure will come into force on November 1 this year. The measure is aimed at stimulating local tourism and reducing tax evasion in this sector. The same emergency ordinance eliminates the royalties for geothermal water and mineral water for consumption. Hotels and restaurants in Romania will pay 5% VAT rate editor@romania-insider.com