Romania Moves Forward with VAT Rate Cuts Starting with Foodstuffs

On 7 April 2015, Romania's government approved the measure for reducing the VAT rate on foodstuffs from the standard 24% rate to the reduced 9% rate with effect from 1 June 2015. The country is also planning to cut the standard rate to 20%, which the government had indicated might take place in 2015, but will now likely happen in the beginning of 2016. The government has also indicated the possibility of an additional cut in the standard rate to 18% in 2018.