Clarifications regarding the application of the reduced 9% VAT rate
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30 August 2013
Joint Order no. 1.436/852/2013 of the Ministry of Public Finance and the Ministry of Agriculture and Rural Development regarding the application of the reduced 9% VAT rate for bread and bakery products was published on 28 August 2013.
The main provisions of the Order are as follows:
- Bread is defined as the product prepared from a dough of different assortments of flour, mixed or used as such, with or without other ingredients, kneaded with water, loosened by yeast fermentation and pre-baked or baked, including frozen. This definition excludes products to which honey, eggs, cheese or fruits have been added.
- Bakery specialties falling within the NACE/CPSA code 1071 which have the same composition as bread qualify for the reduced VAT rate. For bakery specialties with fillings, the standard 24% VAT rate is applicable.
- The 9% VAT rate is applicable for bagels irrespective of whether or not they are loosened by yeast fermentation.
[Source: Official Gazette of Romania no. 543/28 August 2013]
For more information, please contact Peter de Ruiter, Mihaela Mitroi, Ionut Simion and Daniel Anghel.