Starting 1 June 2015 food products in Romania will be taxed at a reduced VAT rate of 9%.
The reduced VAT rate will be levied on food and non-alcoholic beverages intended for human and animal consumption, the supply of live domestic animals and poultry, the supply of seeds, plants and ingredients used in preparing food and the supply of certain food supplements or substitutes.
The 9% VAT rate will also apply to restaurant and catering services, exclusive of alcoholic beverages.
The current VAT rate on food is 24%, with the exception of bread related products (bread, certain bakery specialities, flour and grain) which have been subject to 9% VAT since 1 September 2013.
Further clarifications regarding the details identifying which food products and non-alcoholic beverages will be taxed at the reduced rate will be published in the Norms of the Fiscal Code.
Currently, the reduced VAT rate of 9% also applies to admission fees at museums, historical monuments, zoos and botanical gardens, cultural events, cinema tickets, school manuals, books and newspapers, hotel accommodation, supply of prostheses and orthopaedic products, as well as medicines for human and veterinarian use. Additionally, a lower VAT reduced rate of 5% applies to certain types of housing.