Latest news from Romania

EU commission take action against split payment regime in Romania

The European Commission (EC) recently sent a letter of formal notice to Romania requesting that they withdraw the new value added tax (VAT) split payment regime introduced in January 2018. Currently, the split payment procedure requires Romanian VAT registered businesses with an overdue VAT debt to open special, secure bank accounts which are specifically used… Read More

Romania cuts accommodation and hotel services VAT rate to 5%

From 1 January 2019, the Romanian government have announced that they will cut the VAT rate applicable to hotel accommodation and restaurant services to 5%. This change mirrors the majority of EU countries who already apply a reduced VAT rate to hotel accommodation.

UPDATE: Romania to consider the implementation of split payments

On the 14 December 2017, the Romanian government approved a new law that significantly alters which businesses are affected by the new VAT split payment legislation, which is to be introduced on 1 January 2018. Originally this was going to apply to all VAT registered businesses in the country, however the new law states that… Read More