- The reduced rate of 9% applies to:
– the supply of the following goods: foodstuffs, including beverages, excluding alcoholic and non-alcoholic beverages falling within NC codes 2202 10 00 and 2202 99, intended for human and animal consumption, live animals and poultry of domestic species, seeds, plants and ingredients used in the preparation of foodstuffs, products used to supplement or replace foodstuffs.
– the supply of chemical fertilisers and chemical pesticides of a kind normally used in agricultural production, provided for by joint order of the Minister for Finance and the Minister for Agriculture and Rural Residence Development;
– the supply of fertilisers and pesticides of a kind normally used in agricultural production other than those referred to above, seeds and other agricultural products intended for sowing or planting, and the supply of services of a kind normally used in agricultural production, as provided for by joint order of the Minister for Finance and the Minister for Agriculture and Rural Development;
– accommodation in the hotel sector or sectors with a similar function, including the rental of land set aside for camping;
– restaurant and catering services, excluding alcoholic and non-alcoholic beverages falling within NC codes 2202 10 00 and 2202 99;
Therefore, accommodation and restaurant services are back to 9%.
- The conditions for the application of the reduced rate of 5% in the case of supply of housing are modified. A new limit is introduced (600.000 lei)
The 5% rate applies to the supply of residences with a useful floor area of up to 120 square metres, excluding household annexes, the value of which, including the land on which they are built, does not exceed the sum of 600,000 lei, excluding value added tax, purchased by individuals individually or jointly with another individual/other individuals. The useful floor area of the residence is that defined by Law No 114/1996, republished, as subsequently amended and supplemented. Household annexes are those defined by Law No 50/1991, republished, as subsequently amended and supplemented. The reduced rate applies only to residences which at the time of delivery can be lived in as such. Any natural person may purchase, as from 1 January 2023, individually or jointly with another natural person/other natural persons, a single residence the value of which does not exceed 600,000 lei, excluding VAT, at the reduced rate of 5%;
By way of derogation from the above, in 2023, the reduced VAT rate of 5% shall also apply to:
- a) the supply of residences with a useful floor area not exceeding 120 square metres, excluding household annexes, the value of which, including the value of the land on which they are built, does not exceed the sum of RON 450,000, excluding value added tax, purchased by natural persons, if they have concluded by 1 January 2023 legal acts between living persons concerning the advance payment for the purchase of such residences;
- b) the supply of residences with a usable surface area not exceeding 120 square metres, excluding household annexes, the value of which, including the value of the land on which they are built, exceeds the sum of 600,000 lei, but does not exceed the sum of 700,000 lei, excluding value added tax, purchased by natural persons individually or jointly with another natural person/other natural persons, if they have concluded by 1 January 2023 legal acts between living persons concerning the advance payment for the purchase of such a residence.
Source: https://ceccar.ro/ro/