Romania plans to increase its standard VAT rate from 19% to 21% as part of a sweeping tax reform announced by the new government. The changes, which will go into effect on August 1, 2025, are aimed at reducing public spending and increasing state revenue. 

The bottom line: This rate change represents a significant tax increase for most goods and services previously taxed at lower rates in Romania. Businesses operating in the country should prepare their accounting and point-of-sale systems for these changes before the August 1 implementation date.