At the beginning of Thursday’s Cabinet meeting, the Dancila said past experience proved that reducing VAT in the sector makes for positive effects in the economy.
“The number of tourists accommodated in August 2018 was almost 10% higher than in the same period last year. We are taking today another step to support this sector: reducing VAT to 5% for accommodation, restaurant and catering services, but also for using sports facilities, theme and recreational parks. Romania will have thus the lowest VAT in the EU for tourism, and past experience shows that lowering tax brings positive effects to the economy,” she said.
On September 29, Dancila requested Finance Minister Eugen Teodorovici to draft a bill which would extend the reduced VAT quota to tourism-related services.
Specifically, the reduced tax rates will apply to “hotel accommodation, including camping; restaurant and catering services, except alcoholic beverages other than beer; using sports facilities and the access to theme and recreational parks,” according to a statement by the Government at the time.