The Association of Real Estate Investors in Romania (AREI) is making efforts for the reduction of VAT to 5 percent for more expensive homes to be applied if not from this summer, then from January 1, 2022.
The postponement of the VAT reduction for homes up to EUR 140,000 brings an extra RON 200 million to the state budget, the Government justified the decision to keep the tax at 19 percent, compared to 5percent as it should have been this year.
“This month we will have more meetings with local authorities, we are waiting. We have set up two meetings, we are trying and making every effort to apply if not this summer, then at least from January 1, 2022,” said Antoanela Comsa. “The government will not have a deficit by applying this point, given that there are many other processes along which it can recover the so-called loss. Instead of collecting 19 percent of 10 apartments, hypothetically speaking now, will collect 5 percent of 150 apartments. Overall, the amount will be the same,” Comsa added.
