Since 1 August 2025, Law No. 141/2025 amending the Romanian Tax Code has been in force, introducing a significant increase in VAT rates:
The standard rate has risen from 19% to 21%
The reduced rate has increased from 9% to 11%, with its scope of application significantly reduced
The super-reduced rate of 5% has been abolished
These changes were announced at the end of July, leaving businesses with very limited time to update their invoicing systems. However, the situation is more complex than a simple rate change from a given date.
Key points to watch
1. Advance payment invoices issued before 1 August for goods delivered after this date
For advance payments invoiced before 1 August (with VAT at 19% or 9%) but delivered after that date, an adjustment is mandatory.The initial advance invoice must be cancelled (removing the 19% or9% VAT)
The initial advance invoice must be cancelled (removing the 19% or 9% VAT)
The final invoice must apply the new VAT rate (21% or 11%), as the tax point in this case is the date of delivery.
2. Price reductions granted after 1 August for transactions prior to that date
Where a discount (e.g. volume rebate) relates to sales made before 1 August, the VAT rate in force at the time of the original transaction applies.
Example: a rebate granted in August 2025 for sales from the first half of 2025 must use the 19% or 9% VAT rate, not the new rates.
We strongly recommend that companies carefully review their July and August transactions to avoid errors in reporting or invoicing. Finance and accounting teams should be especially vigilant to ensure the correct rates are applied according to the nature of each transaction and its tax point.
