Government Decision No. 602/2025, amending Title VII “Value Added Tax” of the Methodological Norms for the application of the Fiscal Code (GD No. 1/2016), was published in the Official Gazette No. 715 of 31 July 2025. The changes follow Law No. 141/2025, which introduced new VAT rates.
- Definition of foods eligible for reduced VAT
The rules clarify the meaning of “food intended for human consumption” and “food intended for animal consumption” according to Regulation (EC) No. 178/2002. A reduced VAT rate of 11% applies to the supply of food (including beverages), live domestic animals and birds, with certain exceptions.
- List of goods with reduced VAT
The reduced rate applies along the entire supply chain, regardless of the product’s final destination, for goods under specific NC codes – from live animals and dairy products to vegetables, fruits, cereals, oils, processed foods, and non-alcoholic beverages (NC 2201 and 2209).
Exception: foods with added sugar ≥10 g/100 g product, except infant milk powder.
- Examples of application
- Fruits: both producer and trader apply 11% VAT regardless of the final use of apricots.
- Honey: reduced VAT applies even when sold to cosmetics factories or mead producers.
- Soybean oil: imports for biodiesel production benefit from 11% VAT.
- Other cases with reduced VAT
- Accommodation: in the hotel and similar sectors, including camping, 11% VAT applies regardless of package (breakfast, full board, all-inclusive).
- Restaurant and catering services: 11% VAT for food, except alcoholic beverages and certain non-alcoholic drinks (NC 2202).
- Social policy housing: 11% VAT applies if conditions in Article 291(2)(l) of the Fiscal Code are met, based on a notarised buyer’s declaration.
- Repeals: the reduced VAT for notified food supplements is removed.
- Mixed packages rule
If a package includes goods/services with different rates, the rate of the main service applies, as per ECJ ruling C-463/16.