The VAT rate on the Romanian market dropped from 20 percent to 19 percent for all non-food goods on Jan. 1. A year earlier, VAT for non-food products fell from 24 percent to 20 percent, and in June 2015, VAT was fell to 9 percent for food products.
The new government, formed by a coalition between the PSD and ALDE parties and led by Sorin Grindeanu, guarantees that it will maintain the pace of lowering the VAT rate, which should drop to 18 percent by January 2018.
