9% VAT rate for accommodation

9% VAT rate for accommodation

View this page in: Romanian
26 January 2015

In brief

A new amendment to the Methodical Norms for the application of the Fiscal Code provides for a reduced 9% VAT rate for all types of accommodation available in tourist locations which offer housing facilities. The same 9% rate also applies to the recharge of the exact cost of such operations, except when the special VAT regime for tourism agencies is applied.

In detail

The amendment of point 23 in the Methodological Norms for the application of Law no. 571/2003 concerning the Fiscal Code provides for a reduced VAT rate of 9% for all types of accommodation available in tourist locations. The types of accommodation covered are:

  • accommodation without breakfast;
  • accommodation with breakfast;
  • half-board accommodation;
  • full-board accommodation;
  • “all-inclusive” accommodation,

offered at an aggregated total price.

The 9% VAT rate is also applied to the recharge of the exact cost of such operations, except when the application of the special tax regime for tourism agencies is mandatory.

[Source: Official Gazette no. 46/20.01.2015]

The takeaway

The reduced rate of 9% applies to all types of accommodation.

Furthermore, this rate also applies to the recharge of the exact costs incurred in such activities, except when the situation requires the application of the special tax regime for tourism agencies.

 

For a deeper discussion of how this new legislation might affect your business, please contact: 



 

Mihaela Mitroi
Partner
Mihaela.Mitroi@ro.pwc.com
Ionuţ Simion
Partner
Ionut.Simion@ro.pwc.com

Daniel Anghel
Partner
Daniel.Anghel@ro.pwc.com
Diana Coroabă
Partner
Diana.Coroaba@ro.pwc.com

 

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Contact us

Ionuț Simion

Country Managing Partner, Romania

Tel: +40 21 225 3708

Daniel Anghel

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Tel: +40 21 225.3794

Diana Coroabă

Partner, Tax Services

Tel: +40 21 225 37 94

Ionuţ Sas

Partner, Tax Services, Romania

Tel: +40 21 225 3741

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