• Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 8/23/2013

Romania - Reduced VAT for bakery products, effective September 2013 

August 23: A reduced 9% rate of value added tax (VAT) in Romania applies for the supply of bread and bakery products including flour and wheat.

The VAT rate change is contained in Government Ordinance no. 16/2013 as published in the official journal (no. 490, 2 August 2013).

Other amendments provide for:

  • A reverse-charge mechanism for electricity trading and for transfers of green certificates
  • Additional excise tax (duty) for certain luxury items
  • Increased excise tax on ethyl alcohol
  • Repeal of an income tax deduction of up to 300 lei (approximately U.S. $100) a year for investments in the collective savings system for housing
  • Repeal of an exemption from environmental stamp tax for vehicles acquired under a shared ownership arrangement

In general, the provisions are effective 5 August 2013 (except for provisions concerning certain excise taxes, the reduced 9% VAT rate, and reverse-charge mechanism for electricity trading and transfers of green certificates, which are effective 1 September 2013).

Read an August 2013 report [PDF 371 KB] prepared by the KPMG member firm in Romania: Tax Newsflash (Issue 295): Amendments to the Fiscal Code

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