VAT in Romania – VAT Rates in Romania 2026

VAT in Romania is a value added tax applied to the sale of goods and services on the Romanian market. It is the same type of tax that applies in other European Union countries – it is charged on purchases and sales, but ultimately borne by the final consumer. If you run a business or plan to sell to customers in Romania, understanding Romanian VAT is essential for correct tax settlement and pricing of your products or services.

How does VAT work in Romania?

VAT in Romania operates on the principle of taxation at every stage of the supply chain. The manufacturer charges VAT on wholesale sales, the distributor adds VAT to the price and sells onward, and the process continues until the final customer. Businesses may deduct the VAT paid on purchases, meaning the final amount paid to the tax authorities is the difference between VAT collected from customers and VAT paid to suppliers. This mechanism prevents double taxation and unnecessary cash flow burdens.

What is the VAT rate in Romania in 2026?

If you are wondering what the VAT rate in Romania will be in 2026, the situation is relatively straightforward. As of 1 August 2025, the Romanian VAT system underwent significant changes. The standard VAT rate was increased from 19% to 21%, and the previous reduced rates of 5% and 9% were replaced by a single reduced rate of 11%. Both rates apply in 2026. As a result, Romania now applies only two main VAT rates: 21% and 11%. Most goods and services are subject to the higher rate, while selected products and services benefit from the reduced rate. This simplification has reduced accounting errors and made compliance easier.

VAT in Romania in everyday practice

The standard VAT rate of 21% applies to most goods and services sold on the Romanian market. This means that businesses such as shops, restaurants, service providers or beauty salons will apply this rate to the majority of their sales.

The reduced 11% rate applies to selected goods and services. In practice, shopping centres, pharmacies, book publishers, firewood suppliers, as well as certain cultural and tourism services may benefit from the reduced VAT rate. However, it is always advisable to verify whether a specific product qualifies.

Why were the VAT rates changed?

The VAT reform in Romania is part of broader fiscal measures introduced by the government. Increasing the standard rate and reducing the number of reduced rates has resulted in:

• a simpler and more transparent tax system,

• fewer classification errors,

• higher budget revenues to support public spending.

Which goods and services are subject to the reduced rate?

Although the standard VAT rate is 21%, the reduced 11% rate applies to a wide range of essential and socially important goods and services, including:

• food and non-alcoholic beverages,

• medicines and pharmaceutical products,

• heating energy during the heating season for eligible consumers,

• admission tickets to museums and cultural venues,

• firewood.

VAT classification is detailed and depends on national legislation.

VAT registration in Romania

Businesses selling in Romania may be required to register for VAT. Both local and foreign businesses are subject to turnover thresholds triggering registration. After registration, companies must:

• charge Romanian VAT on invoices,

• keep sales and purchase records,

• submit regular VAT returns.

Failure to comply may result in penalties.

OSS and cross-border sales

If you sell goods to private customers in Romania from another EU country, you may use the OSS procedure. This allows you to apply Romanian VAT rates and declare them through a single OSS return without local VAT registration.

VAT and pricing

For consumers, VAT is included in the shelf price. For businesses, VAT affects pricing strategy, margins and competitiveness. While it increases the final price for customers, it remains one of the main sources of state revenue.

Will VAT in Romania change again?

Tax systems evolve. The current VAT structure of 21% and 11% entered into force on 1 August 2025. Future changes are possible, which is why businesses should monitor official announcements or consult tax advisors.

In 2026, Romanian VAT consists mainly of two rates: 21% (standard) and 11% (reduced). Understanding these rules helps businesses and consumers plan costs, prices and remain compliant with Romanian tax law.