Romania VAT rate reform 2025: A comprehensive fiscal and accounting compliance guide

Abstract

The fiscal landscape of Romania is undergoing a significant overhaul following the adoption of new legislative measures aimed at enhancing budgetary stability and revising existing taxation policies for both businesses and individuals. These changes were initially introduced through Emergency Ordinance no. 156/2024, published in the Official Gazette on December 31, 2024. Subsequently, the measures were codified and detailed by Law no. 141/2025, which was published in the Official Gazette no. 699 on July 25, 2025. The critical date for the mandatory implementation of these new Value Added Tax (TVA) rates is August 1, 2025. This mid-fiscal-period timing presents immediate and complex challenges for accounting compliance, as the transition occurs in the middle of the third quarter (or the second semester) of the fiscal year 2025. Entities must ensure their financial systems are prepared to manage a blended reporting period, accurately differentiating between operations subject to the old rates (prior to 01.08.2025) and those subject to the new rates (from 01.08.2025).