“As regards lowering VAT on bread to 9%, the effects of such a measure depend highly on the reverse taxation system on cereal, which may or may not be extended beyond June 1,” said secretary of state Dan Manolescu.
He said Romanian authorities have called on the European Commission in March to extend the reverse taxation system beyond June 1 and hope for an answer by the end of April.
“Depending on the Commission’s answer, we will decide how this 9% sales tax will apply. If the measure is not extended, we’ll have to decide whether to apply the lower sales tax on the entire wheat-bread chain or for bread alone,” said Manolescu.