Legislative information - VAT amendments applicable from August 1, 2025

Starting from August 1, 2025, the amendments to Law no. 141/2025 and the new methodological norms related to the Tax Code come into force. These changes have a significant impact on the application of VAT rates, both for the delivery of goods and for the provision of services.

1. Standard VAT rate

• Starting from August, the standard VAT rate has increased from 19% to 21%.
• This rate applies to all goods and services not expressly mentioned as benefiting from a reduced rate.

2. Elimination of 5% and 9% rates

• The reduced rates of 5% and 9% have been eliminated.
• In their place, a single reduced rate of 11% has been introduced.
• Thus, only goods and services expressly provided for in the legislation will be able to benefit from this rate. The rest will be classified under the new standard rate of 21%.

3. Correct identification of the VAT rate

For the correct application of the VAT rate, specialists recommend:

• Consulting the Tax Code and the methodological norms;
• Checking the Combined Nomenclature (CN) of the European Union, as tax legislation directly refers to these codes.

Practical example:

• For products or services where there are ambiguities regarding the rate (11% or 21%), the corresponding CN code must be checked.
• In cases of doubt, consulting a specialist in customs legislation is useful, considering that CN is essentially a customs classification tool.

The Geseidl Consulting Group team remains at your disposal for clarifications and support in implementing the new VAT rules.