Reduced VAT rate for types of accommodation

In the Official Gazette of Romania, Part I, no. 46 of 20 January 2015 was published the Government Decision no. 20/2015 for amending paragraph. (6) point 23 of Title VI “Value Added Tax” from the Rules for implementing Law no. 571/2003 regarding the Fiscal Code, approved by Government Decision no. 44/2004.

The amendment concerns the extension of the scope of the reduced VAT rate of 9% in tourism.

Thus, the reduced VAT rate of 9% applies to types of accommodation in the structures for tourists reception with accommodation facilities provided in art. 21 of Government Ordinance no. 58/1998 regarding the organization of tourism activity in Romania. The 9% rate also applies when re-invoicing the exact cost of such operations as provided in section. 19 para. (4), unless it is mandatory to apply the special tax regime for travel agencies, referred to in art. 152^1 of the Tax Code.

According to art. 21 of G.O. no. 58/1998, there are the following types of tourist accommodation: accommodation with breakfast, bed and breakfast, half board accommodation, full board accommodation, accommodation “all inclusive”. The reduced rate will apply to all these types of accommodation.

:: The source:

Adina Elena OPREA
Junior lawyer

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