Global Daily Tax News, Romania Enacts Law For VAT Rate Hikes, (Jul 28, 2025)
On July 25, Romania's President, Nicusor Dan, signed legislation into law to hike the nation's value-added tax rates.
The legislation provides for the introduction of a two-rate value-added tax system, in place of the current system that features three rates.
With effect from August 1, 2025, the headline VAT rate will rise to 21 percent, up from 19 percent, and the two VAT reduced rates, of nine and five percent, will be merged into a single 11-percent rate.
Romania will also raise the tax on dividends income from 10 percent to 16 percent, with effect from January 1, 2026.