Reduced VAT: clarifications

With Decree of the Ministry of Public Finance No. 367 of May 27, 2015 ( H.G. 367/2015) some clarifications have been issued regarding the 9% reduced VAT :

1 – tourism sector: the application of reduced VAT concerns all types of stays offered through “tourist packages”; the introduced amendments mention the possibility of applying the reduced rate also to alcoholic beverages, if their price is included in the offered package;

2 – food sector: the customs codes of the foodstuffs to which the reduced rate applies have been specified; the reduced VAT applies to the goods concerned throughout the entire economic cycle involving them, from production to sale to the final consumer regardless of the type of supplier entity involved whether trader or producer, with some exceptions;

The above exceptions relate to certain types of foodstuffs (plant extracts, seeds and fruits etc.) specifically identified through customs codes to which reduced VAT is applied by any selling party only if it can be demonstrated that such foodstuffs are used for the preparation of complex foodstuffs for human or animal consumption.

As a reminder, the new rules on reduced VAT are effective June 1, 2015.

We remain available for further clarification